Statistics Canada recently released the 2007 Accounting Services Prices Indexes, only 2½ months after the 2006 Indexes. Inflation in tax preparation fees slowed significantly in 2007, with corporate tax preparation fees actually showing slight deflation.
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The Accounting Services Price Indexes (ASPI) collect information on the price of several accounting services such as auditing, taxation, and bookkeeping. From this data, price indexes are constructed measuring changes in these prices over time.
After several years of steady growth the prices for personal and corporate tax preparation slowed, with corporate tax prep even showing a small decline. Assurance work saw the highest growth rate, with compilations and bookkeeping coming a close second. For every $100 dollars charged by an Ontario accounting firm for personal tax preparation in 2000, they now bill an average of $135.20. The annual growth rates for each price index looks like this:
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About the survey
These indexes summarize the results of a survey completed annually by accounting firms across Canada. For the ASPI, the target population consists of all establishments primarily engaged in accounting services with an annual revenue equal to or exceeding $50,000, as identified on Statistics Canada’s Central Frame Database. The respondents are selected through a probability sample survey proportional to the significance of their operating income and based on the region they are located in. The sample size is approximately 500 establishments.
Responding to this survey is mandatory. Data are collected directly from survey respondents.
During the collection process, interviewers contact the respondents by phone to indicate that a questionnaire will be mailed. Subsequent contacts with the respondent take place when questionnaires are late or the responses provided require clarification. In the case of late respondents, several follow-up contacts can be made including sending out a reminder letter in order to obtain their response.
The quality of the price data rests on the response rate and degree of imputation. In this regard, the quality of the price information is judged to be high, as the response rate is about 80% and degree of imputation is minimal (i.e. less than 5%).
This Price Index series, and others like it, are the result of the Voorburg Group, an independent working group of national statisticians focussed on price indexes for service industries. Their collected papers on accounting services price indexes may be found on their website, with homepage at http://www.voorburggroup.org.
