You can pick out any accounting firm and notice that it offers services to a diverse range of businesses and individuals. It completely makes sense as each business has its own needs and requires a different kind of accounting. And if there is an accounting firm, it should be able to deal with the different types of individuals and cater to the needs of various sorts of industries.
Now, the issue is that each industry has its own problems, and the structure of financial and tax statements for each industry is different. It becomes difficult for Accountants to study the problems, opportunities, key performance indicators (KPIs) and best accounting practices for each industry. Getting trained to gain expertise in each industry is very difficult. Accounting cannot be categorised as one-size-fits-all and needs specialisation according to every unique client.
To overcome all such issues, the Accounting and CPA firms look out for the niches and get trained in dealing with their accounts. Once you gain expertise in one or some of the niche areas, you are well versed in the client’s language. You have a broader perspective than a generalist and can deal with their accounts efficiently. This makes your firm a go-to firm for clients from the specific niche industry and increases your profit potential significantly.
Table of contents
- What is an Accounting Niche?
- Five benefits of working with a niche
- The Fastest-Growing Niche Markets for Accountants
- Medical Practitioners
- SAAS (Software as a service)
- Real Estate
- Hotels, Restaurants and Cafes
- Law Firms
- Summing Up
What is an Accounting Niche?
A niche is a synonym for “market” or “industry”. You might have seen some accounting firms targeting particular kinds of businesses or sections of the market, such as SaaS companies, B2B services, the e-Commerce industry, restaurants, hotels, and universities. This is because these are accounting niches.
The derivative “niching” means your firm specialises in serving a specific market or industry. This is because your marketing content is related to those businesses, your website is full of their terminology, and your service is also somewhat customized and depicts the needs of such enterprises. One can study your examples and strategies and decipher your inclination toward a particular business.
Five benefits of working with a niche
- Your business model turns streamlined. For a few industries, you become the best option and you are not just a regular firm for them. Once you start working with similar clients, you get well-versed with their language, financial structure, Service Delivery, mobility and other relevant sections. This provides you with expertise in dealing with similar companies smoothly.
- Usually, startups focus on the “burn rate” and “financing”, while a dentist might be interested in purchasing some properties. The more you work with similar kinds of clients, the better you understand your needs and provide deepen understanding.
- You will have a domain to target, and you can devise your marketing strategies accordingly. This will help you in building out long-term strategies for your clients, as well as it will give direction to your content creators and marketing experts.
- Once you become specialised and customisable, you will definitely get a premium price in your marketplace. This will help you grow and eventually increase your profit bandwidth.
- Once the client becomes aware that you are specialised and have deep expertise in the particular field, they won’t wander here and there and you can retain the client for a higher lifetime.
The Fastest-Growing Niche Markets for Accountants
The only Industry that did not see any low even during the pandemic is Healthcare. In fact, the pandemic has brought a lot of modernization and a wave of rapid investment in the Healthcare sector. There is a wide opportunity for Accountants to serve doctors, medical practitioners or hospitals.
SAAS (Software as a service)
SaaS is another sector of society which is growing at a very high pace. In the initial days, many startup owners do not hire an accountant and this can mess up their accounts and create hurdles if the company wants to go public. An accountant can deal with all this. Since most startups work on a subscription business, they need unique accounting, advisory, and tax services.
Real estate allows you to get a diverse set of clients that include investors (both domestic and international), brokerage firms, and property management firms. While, dealing with the tax issues of short-term rentals is quite easy, on the other hand, federal tax rules can be quite wholesome.
Hotels, Restaurants and Cafes
Ho-Re-Ca is one of the most rapidly growing industries across the globe. Accounting for a restaurant is analogous to that of a manufacturer, as both of these industries turn raw materials into sellable products. Though, the restaurants might face some challenges due to the short shelf life of the raw materials and seasonal demands from the customers.
Law firms come across numerous compliance and regulatory issues. Trust is a huge deal, and gaining expertise in the specific needs of law practices makes you trustworthy. These issues make legal professionals a great niche to acknowledge the need for specialised individuals.
After reading about the niche markets, you can start preparing to deal with the finances of such firms. You can learn from any senior accountant or look out for an internship in some accounting firms that offers the best atmosphere for you to know. You can shadow some senior accountants working for some niche enterprises and learn from them.
You may even try to look out for part-time jobs and junior positions in any of the niche markets. This will help you get some experience and expertise that can get your full-time job in the future. If you are looking for a trained professional from any niche markets to deal with your business accounts, or you want to hire an accountant, you can reach out to us at 123finacials.