Choosing an area of expertise in the accounting industry is an assured strategy of gaining focus and building dominance. Niches are defined areas of specialization that give you hold of a specified section of the industry/market to handle. Understanding accounting growth areas begins with analyzing CPA niches and selecting a tax niche that perfectly defines your firm’s goal.
Most growing accounting firms, CPAs, and financial advisors are always stuck trying to choose a niche for themselves.
Although niches help give you an area to focus your market dominance on, finding a profitable tax niche is where the problem lies.
Considering how vast the accounting industry is, it is advisable to choose a niche and channel all your energy to it.
However, in this guide, we provide many simple ways of finding the perfect tax niche for your brand and accounting firm.
Why should you create an accounting/tax niche?
Accounting is a broad industry and it is quite impossible to be an expert in all fields. You should create an accounting niche to help you narrow your services to a specified audience. This will give a clear approach through the CPA niche market, grant you access and insight into customer needs, and keep you constantly updated about global trends related to your tax niche.
The truth remains—you should not be a jack of all trades and a master of none.
Four benefits of creating/finding an accounting niche include:
● Brand Authority
Customers usually trust brands that stand for something. Whether you are for estate planning or accounting, international tax, or mergers and acquisitions, clients will put more trust in you if they understand that you are well-rooted in a particular field than when you are trying to put petty touches on all accounting fields.
This also poses a competitive advantage to you as it sets you apart from other brands, while you attract a specific audience and business. Building a strong brand sense around your niche proves beneficial as you can increase your fees for more value to your clients.
You get to choose a tax niche market from the numerous ones available on the CPA niche market. You probably selected this niche because you feel it is something you can handle while measuring its potential returns and profit.
Building your career as an accountant with the driving force of a Tax niche keeps you focused on a specified audience.
You gain much mastery as a specialized accountant while doing what you love.
● Higher Profit Margin
With a specified market and in-depth knowledge and experience which competitive accounting firms do not have, you have higher chances of generating higher profits, by introducing more value-added services and service-oriented packages. Clients are ready to pay much to the accounting firm that is specific to a tax niche.
● Excellence and Service
In general, niche accounting firms are known for their expertise and great service delivery. They understand trends around their area of specialization while working hard to provide solutions for the clients.
The majority of clients will prefer tossing their fortune to niche accounting firms than investing in general accounting enterprises.
Types of Accounting
Understanding the types of accounting helps you easily decipher accounting growth areas and CPA niches that fit your accounting firm.
There are four major types of accounting.
● Public Accounting
Public accounting deals with all financial accounting businesses with companies, corporations, individuals, or any private entity.
Accountants in this field specialize in tax regulations, financial reports, filings, records, and statements.
It is a problem-solving branch of accounting that requires that the accountant is well-rooted with understanding about the financial framework and how to apply them in businesses.
● Forensic Accounting
Forensic accounting is a technical field of accounting that involves the collection, reconstruction, and recovery of difficult-to-handle data.
Forensic accounting requires high skill for solving complex problems.
● Government Accounting
Government bodies are not left out of the need for accountants. Government accounting deals with all accounting practice that involves local, state or federal government agencies.
This could include the retrieval, storage, and analysis of confidential information of the government.
● Corporate Accounting
Corporate accounting is restricted to handling company data, financial accounts, and cash flow. This branch of accounting is associated with employing all methodologies that will aid financial submissions and tax submissions, analysis, and interpretation of the company’s financial strength and deficit.
High Demand Accounting Niches
Here are the top 6 high demand tax niches in 2021
- Real Estate
- Marketing Agencies
- Law Firms
- Health Industry
- Construction Companies, Tradesmen, Craftsmen and Artisans
- Engineering Firms
How do you find a niche in accounting?
There are a lot of factors to consider while trying to find a niche in accounting. Amongst the numerous CPA niches available in the market, some niches are tailored for your business model or they could yield fewer profit returns.
Before you choose a niche in accounting, consider the following;
- Market Demand
- Economy Stability
- Business Trends
- Social Impacts
Here is a quick rundown on how to find a niche in accounting:
- Decide on what you want in the accounting industry
- Note your strengths and weaknesses
- Understand who your clients should be
- Decide what services you can offer
- Research your proposed niche
How to Grow Your Accounting Firm Through Strategic Niche Selection
Growing an accounting firm through selecting strategic niches goes beyond choosing a profitable niche among accounting growth areas but also choosing a niche that best describes your company’s value.
Growing your accounting through strategic niche selection begins with few processes:
- Strategic Branding
- Niche Marketing
- Social Media Campaigns
- Content Marketing
- Seeking Referrals.
A good growth plan for an accounting firm must be targeted at getting new clients while dishing out more value to society. There are numerous ways of exploring the CPA niche market, discovering your niche, and dominating around its sphere.
Strategic planning is a good way to begin, but a detailed guide will go a long way to fast-track the process and cut down on redundancies. If you’re ready to advance your career as an accountant, discover your niche, and dominate the niche market, click here to join the AFO Wealth Management Forward course.