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
Jump Ahead To:
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 products and services. They can be very busy that they forget to do their accounting and taxes, which causes a lot of problems as they grow. Accounting professionals are often needed to lead them forward.
Business plan creation, pricing of tiered technical consultation, tracking R&D credits, managing capital and operational expenditure, and navigating sales taxes in multiple jurisdictions are some of the things computer and IT people need help from accountants. Those who are willing to learn and brave this challenging niche would never run out of work.
The growth estimate is primarily attributed to the country’s aging population. Aside from 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.
Digital Marketing & Advertising
The U.S. has the largest digital marketing and advertising market in the world. According to MAGNA, the industry will continue to grow by 13% at the end of 2022. This covers services such as search engine optimization (SEO), email and ad campaigns, affiliate marketing, and social media management.
Digital marketing agencies help multitudes of businesses reach their target audience and effectively generate sales. As their profit margins go higher, they need accountants to manage their auditing, comply with tax requirements, and provide analytical insights, to further increase their reach and tap more advertising opportunities.
Cryptocurrency & Blockchain Technology
According to Pew Research Center, 16% of U.S. citizens have invested, traded, or used cryptocurrency or blockchain technology. In 2020, Americans have earned over $4 billion from it. Undeniably, the tech has a high demand and is very profitable, which makes it a good option as an accounting niche.
Cryptocurrency and blockchain technology is a niche that has been seeing an increasing number of CPA and tax firms wanting to specialize in it. Accounting professionals help provide effective control and management of digital asset footprint. Plus, there’s the increasing opportunity in crypto-driven taxes.
Financial Advisory & Wealth Management
According to the 2021 report of Boston Consulting Group, there’s an estimated $100 trillion of global assets under wealth management or financial advisory services. The industry has been resilient amidst the pandemic and is still growing steadily. It’s a viable niche for accountants seeking to specialize.
Many people want to secure and enjoy generational wealth for themselves and their families. Unfortunately, a lot of those don’t know how and would need someone to educate them first. This is where the market of financial advisory and wealth management professionals comes from.
The 2021 BCG report revealed that North America is the world’s largest asset management region. This goes to show that many do prioritize making good financial decisions, but without the stress of doing it themselves. The same people are more likely to need accounting, bookkeeping, and tax professionals.
Digital marketing agencies help multitudes of businesses reach their target audience and effectively generate sales. As their profit margins go higher, they need accountants to manage their auditing, comply with tax requirements, and provide analytical insights, to further increase their reach and tap more advertising opportunities.
Cryptocurrency and blockchain technology is a niche that has been seeing an increasing number of CPA and tax firms wanting to specialize in it. Accounting professionals help provide effective control and management of digital asset footprint. Plus, there’s the increasing opportunity in crypto-driven taxes.
Food & Beverage
Another great accounting niche is the food and beverage industry. Opportunities here are projected to grow by 20% in 2030. The higher consumer demand is said to be a direct result of the continued increase in population and income growth in the U.S. The rate is also one of the fastest among all occupations.
The food and beverage industry grappled intensely with the challenges brought about by the pandemic. Many business owners have suffered a lot, but the sector is now gradually rebounding. As health restrictions continue to ease up, the 10.2% jump in sales as of 2021 in the U.S. is expected to increase further.
Law Firms/ Legal Management
There’s an expected stronger demand to hire more law firms and to avail of legal management services as the law industry continues to reduce costs and become more efficient. It’s projected to enjoy a 9% growth by 2030, making it a good market choice for law-focused accountants.
Legal practitioners come in various sizes. You may choose to work with solo practitioners, medium-sized firms, or a large company with dozens of paralegals and attorneys. Expect clients from this industry to have high attention to detail, so you must be able to communicate the value of your services clearly and ensure that you always adhere to all laws and regulations.
The law niche has a steady and recession-proof client base. Legal professionals also often have a big network, which means it’s easier to get in touch with other potential dream clients. On the flip side, bad reviews can disseminate faster as well, so be careful and thorough as you work.
Real Estate
People buying and selling houses won’t be going anywhere, so real estate is a profitable choice for an accounting niche. As a matter of fact, the market is on its way to becoming a multi-trillion dollar market according to a CoreLogic economics professor. It’s just bound to grow further.
Accountants may find themselves working with real estate agents, brokers, or even investors. Since accounting and tax compliance in this industry can be very complex, being knowledgeable of the ins and outs of real estate laws and regulations can make you extremely valuable. You’ll be able to charge premium investments from your clients for your specialized skills.
Construction
Construction is another huge accounting niche that requires specialized knowledge. While it was hit hard by the pandemic, it’s now steadily recovering. It’s projected to grow by 6% from 2020 to 2030 as there is an increased demand for new buildings, houses, and other structures.
Accountants who are experts in complicated construction matters such as job costing, budgeting, and revenue recognition will be in high demand. If you can help clients make their processes more efficient by installing state-of-the-art software, building systems, and providing specific construction-related guidance, you can further increase your perceived value and be hyper-profitable.
You Know The Most High-Demand Accounting Niches... Now What?
If you’ve yet to select an accounting niche, check out our blog on how to choose an accounting niche. We discuss ALL the factors you should consider about yourself, your firm, and your dream clients, and tell you what to avoid when selecting a niche.
The top 10 most profitable and high-demand accounting niches we shared are based on the most recent data available. Keep these industries in mind as you carefully weigh your personal strengths and inclinations. If none of them fits the bill, continue with your market research. And, know that the best person to choose a niche for your accounting, bookkeeping, and tax business you.
Great article! Thanks!