How to Pick High Demand Accounting Niches

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It takes a lot to achieve success in accounting. This is why many accounting firms and startups seek something to provide an edge over their competitors. One of these is entering a niche. 

Entering an accounting niche provides a range of unique benefits. However, it can be tough to determine which niches are worthwhile. 

Let’s look at how to choose a niche and which ones are high-demand accounting niches.

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What Is Niche in Accounting?

In business, a niche is a specific segment within an industry or market. It represents a focus placed on a part of the industry or market rather than on the larger whole. 

For example, a health food store would represent a niche market within the grocery industry. Meanwhile, an underwater welder would represent a niche profession within the welding industry. Anything that represents a smaller part of a large whole is a niche. 

It is important to know that some niches are larger than others. For example, software development is a technology niche. But even within this, there’s the smaller video game development niche.

Benefits of a Niche

Niches have several benefits that make focusing on them attractive. This is because being more specific rather than more general has advantages. 

It’s Easier

For one, working within a niche is often easier. You are only responsible for knowing how to operate within a specific segment of the market or industry. Because of this, you spend your time and energy on this rather than other things. It also simplifies your work because you don’t have to have as much going on at once. 

Provide Higher Quality Service

This allows for another benefit: a higher level of quality. Specializing in your niche gives you more time to grow and adapt to that niche. You can grow and develop related skills and knowledge to provide higher-quality service to your clients. 

Stand Out

Niches are also great because they give you access to a specialized market. There are plenty of clients out there who don’t want a general accountant; they want an accountant specializing in their industry. Entering their niche gives you access to these clients. Clients will be more likely to choose you because they know you truly understand them and their needs.

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Greater Profit

All of these benefits lead to another benefit, greater profit. Specialized services always cost more due to the law of supply and demand. This is because they are in limited supply, causing a price increase and requiring more knowledge, which reflects in the price. Overall, services like these cost more, and companies providing them can make more money. 

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Customer Loyalty

Finally, niches help build customer loyalty. By providing a specialized service, you provide something that many others do not. You also create a customer experience that others cannot match. Because of these things, your clients grow to rely on you over time. They are more likely to stay with you because they trust you to provide for their unique needs and provide for them well. 

Some people worry that specialization will mean they won’t give them as many clients. But, in reality, it can make it much easier to market your business to those specific clients.

Related: How To Find Competitor Pricing: Track The Competition Easy

Finding a Niche

With the above information in mind, it is easy to see the advantage of operating within a niche. However, finding a niche is a new challenge. 

First, you need to decide upon your level of specialization. You can operate as a general accountant but specialize in a particular niche. This allows you to still deal with a wide range of clients while potentially taking on some benefits of niche specialization. Or, you can focus entirely on a niche. In this case, you restrict your reach but can be more attractive within your niche. Ultimately, the choice will vary depending on your current position and the market you are dealing with. 

Next, you need to consider what niche will work best for you. The easiest thing to do is to go with something you already know or have experience with. For example, if you have several clients in the healthcare industry, you can start shifting to cater to clients like those exclusively. Doing so allows you to jump in with ease. 

However, there are other factors to consider, as you also need to consider the potential success of the different industries you are considering. Ask yourself if these industries will do well in the future. Some industries are large now but are expected to shrink in the future. Meanwhile, other industries are small now but are expected to experience serious growth. Keep this in mind, and make sure to do plenty of research. 

You will need to balance each of these factors against each other. It is great if you have experience in an industry that is growing. However, if you don’t, you may need to consider which factor is more important to your business. 

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Popular Accounting Niches

Theoretically, you can develop an accounting niche in any market or industry. However, there are a few sectors where doing so is particularly advantageous. These are where accountants are needed, growth is expected, or the profit potential is high. 

  • Software and software-related startups are a great choice. There is a lot of money and investment within these industries, as they have great funding sources and can qualify for things like R&D tax credits, so the potential for profit is there. There is also a lot of growth, so the potential for clients is greater.
  • Speaking of the tech industry, online shopping and e-commerce is another popular choice. These industries deal with a lot of money flowing in and out and, because of this, need specialized accounting services. 
  • On the topic of complexity, the world of cryptocurrency is another place where accountants are needed. This world is growing and deals with large sums of money. This means that plenty of new startups are flush with cash and looking for an accountant. 
  • Real estate presents a solid opportunity if you’re looking for something tried and true. The industry handles a lot of money and heavily relies upon accounting to manage this. It also has a proven ability to weather financial storms and come out the other end. 
  • Similarly, the construction industry is solid and perennial. This is a tried and true industry that is still expected to experience modest growth in the future. There are even niches within this niche, as the industry is diverse and has a lot of complexity. 
  • The legal industry is another ideal niche to enter. It is a place where trust between parties is incredibly important. Thus, there is a lot of potential to build a loyal list of clients. 
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Picking an Accounting Niche

Picking an accounting niche provides plenty of benefits but can be difficult. However, following the advice listed above will make it easier. You can even use some of the suggestions listed here are a great starting point.

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