Intuit Inc. (INTU): There Will Be A Growing Need For This Kind Of Software

H&R Block is a great way to examine trends in professional tax preparation, particularly how many people are having it done.  If there is one thing we can agree on, it would be that the tax code certainly doesn’t get simpler over time.  As long as this is the case, I see the number of people who seek professional assistance on their tax returns continuing to grow.  For Intuit shareholders, this one is definitely worth following.

Conclusion

With the volume of people filing electronic tax returns, doing their bookkeeping electronically, and more, there seems to be no danger in the near future to Intuit’s core business.  Although the transition from paper to electronic has almost completed, the number of people who will need these services should increase with population trends, and an improving economy as more people will need to file tax returns and more people will start small businesses which will need Intuit’s services.

When Intuit reports earnings later this month (Feb 21), pay attention to these trends, particularly how their small business products are doing.  Unless there are any major surprises from the earnings announcements, Intuit may be a very safe software play that should create a great deal of value for its shareholders.

The article There Will Be A Growing Need For This Kind Of Software originally appeared on Fool.com and is written by Matthew Frankel.

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