It’s inefficient and unsustainable to work with several different types of businesses at the same time, for any accounting, bookkeeping, or tax firm. In order to raise your profits and take back your time, you should choose a specific industry to serve. If you’re unsure about where to start, here are the top 10 most profitable and high-demand accounting niches plus a guide on how to select the right one for you.
Selecting a niche helps you improve the effectiveness of your marketing. It also give you the opportunity to learn how to speak the language of your dream clients’ much faster. And when you can do that, you get an inside look at both their pain points and growth drivers. Last, but certainly not least, it allows you to become the go-to person in a high-demand accounting niche.
How to Select the Right Accounting Niche For Your Firm
To select the right accounting niche for you, first evaluate your experiences, which can increase the likelihood of your success. Next, reflect on your personal preferences to see which niches you can sustainably work with. Finally, perform market research to find profitable businesses.
1. Evaluate Your Experiences
It’s important to evaluate your past experiences and skill set when selecting a niche. What do the people around you say you’re good at? Who have you liked working with in the past? And, don’t forget to consider your educational background and training because these will also help you work more effectively with certain clients.
2. Reflect on Your Preferences
Just as it’s important to think about your personal experience, it’s also important to think about your personal preferences. Reflect on your personal preferences to cross out niches that won’t be sustainable for you. Try to imagine if you will be fulfilled working with a particular industry for at least 5 years. Choosing a niche that you’re truly passionate about will reap huge benefits for you and your clients in the long run.
3. Perform Market Research
The last thing we suggest doing when choosing an accounting niche is to do market research. If you want your firm to be consistently hyper-profitable, it’s imperative to perform market research. Is there an unmet demand for the niche you’re considering? What’s the outlook for that industry in the long run? This step is often the most intimidating and worthwhile. But, there are plenty of tools out there to help you do market research. Check out our quick tutorial on how to do market research with Google Trends.
Top 10 Most Profitable and High-Demand Accounting Niches
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Medical/ Healthcare
The medical field is one of the most high-demand accounting niches in the world. According to the Bureau of Labor Statistics (BLS), healthcare employment opportunities in the U.S. are expected to grow by 16% from 2020 to 2030… Much faster than the average for all occupations.
The growth estimate is primarily attributed to the country’s aging population. In addition to that, the COVID pandemic has pushed healthcare providers to clamor for much higher investment and more rapid modernization of the medical sector. Over 2.6 million new jobs are expected to be created in order to meet the high demand.
Healthcare institutions and practice owners often have their hands full, so it’s no surprise that they will usually need help in their accounting, bookkeeping, and tax matters. On top of that, medical professionals also aim to leverage their earnings into generational wealth.
Accounting professionals can help clients from the medical field deal with balance sheets, bookkeeping, and tax filing. There are also special opportunities such as overhead analysis, pricing medical practices for sale, billing insights, and CFO services. Entrepreneurial accountants can also offer advisory to increase profitability and improve both business and personal cash flow.
Computer & Information Technology
Another profitable accounting niche is the computer and information technology (IT) industry. Opportunities in the U.S. for this field are projected to grow 13% by 2030 according to BLS. With the continuous advancement of technology, it shows no sign of slowing down.
Computer and IT business owners constantly strive to improve their innovative pr