What is your niche in accounting?

However, it will be hard to stand out if you're directly competing with the Big 4 accounting firms. So, ask yourself: is a one-size-fits-all approach sustainable for the long haul?

Many accounting professionals who ponder this question decide to hone their audience, catering their accounting services to a particular industry or client type.

We've compiled this helpful guide to developing an accounting niche for your firm so you can make your mark in today's competitive market. We'll also explain how accounting practice management software can support your firm's new direction.

What is an accounting niche?

An accounting niche is where a firm picks a specialisation from the broad field of accounting services, usually focusing on niche industries or niche clientele.

In a nutshell, niche firms will serve a subset audience with unique accounting services tailored to their needs.

Why do accounting firms need a niche industry?

There are many answers to this. The advantages of having a niche for accounting firms include:

Differentiation: The accounting industry in Australia and New Zealand is a crowded marketplace, and having a niche helps accounting firms stand out. Specialising in different niche industries, client types, or unique accounting services allows firms to differentiate themselves and position themselves as experts in their chosen niche. Defining your ideal accounting niche is essential for attracting clients seeking expertise and solutions for their unique needs.
Targeted marketing: A niche allows accounting firms to focus their marketing efforts more effectively. Instead of casting a wide net and trying to appeal to everyone, firms can target their marketing messages to a specific niche clientele. This targeted approach increases the likelihood of reaching and resonating with profitable clients most likely to benefit from their services.
Increased referrals: A specific industry accounting niche can increase referrals from clients, industry contacts, and other professionals. When clients and contacts encounter someone needing accounting services within the firm's niche, they are more likely to refer them to a specialist with proven expertise in that area. This word-of-mouth referral network can be a powerful source of new business for accounting firms with a niche focus.
A deeper understanding of your clients: By focusing on an accounting niche, firms can develop a deeper understanding of the unique challenges and opportunities within that niche industry or client segment. This allows firms to provide more targeted and effective accounting solutions, increasing customer satisfaction and retention.
Value-added services: A specialty accounting niche enables firms to offer value-added services tailored to clients' needs. By understanding your clients' pain points and industry-specific requirements, you can develop innovative solutions, insights, and best practices that provide added value beyond traditional accounting services.
Higher profitability: Niche accounting firms can use this specialisation to command premium pricing for their expertise, leading to higher profits and more opportunities for accounting firm growth.

How do I create a niche for my accounting firm?

This section is a guide for accountants on some steps you can take to carve out your ideal niche.

Understanding your strengths and interests

A crucial part of finding your accounting niche is to assess your firm's strengths, expertise, and interests.

Consider the industries you have experience working with, the services you excel at providing, and the types of clients you enjoy working with the most.

Reflect on your firm's unique value proposition and what sets you apart from competitors, and jot this down somewhere. Then, you can begin to narrow down the types of accounting niches where your firm may be able to thrive.

Use client management software to differentiate

According to our Your Future Practice studies, less than half of all accounting practices in Australia (45%) have a client management solution in place, with only 14% using client management software.

Client management software gives you a valuable client-centric solution with valuable customer data to better get to know your base.

With client management software, you can add depth to your accounting niche and maximise your current and future opportunities to create a unique accounting service offering.

Researching market opportunities

Once you better understand your firm's strengths and interests, it's time to research potential niche markets and identify opportunities for specialisation.

Conduct market research to analyse industry trends, client needs, and areas of growth or underserved markets.

Look for niche segments that align with your firm's expertise and have a demand for specialised accounting work.

Developing your client profile

To find the right niche for your accounting firm, it's essential to understand your target clients' specific needs and pain points within potential niche markets.

Our recent study surveying other firms in Australia highlighted that approximately 1 in 5 (22 per cent) of surveyed accounting practices in Australia had a completely defined client profile. Creating a profile of your niche client can help you identify the ideal clients that are most likely to contribute to your firm's success in terms of revenue and long-term growth.

By taking the time to understand their target audience correctly, accounting firms can ensure that their resources are being used efficiently, tailor their services to address pain points and provide value-added solutions to set them apart from competitors.

Evaluating your competitors

Before finalising your niche, take the time to evaluate the competitor landscape within your chosen niche market.

Identify other accounting firms or service providers catering to the same accounting niche and analyse their offerings, assessing gaps or areas where these competitors fall short of meeting client needs.

You can use this competitor analysis to position your firm strategically and differentiate yourself by offering unique accounting services.

Establishing your firm's brand and messaging

As you solidify your niche, it's crucial to establish a strong brand identity and a compelling value proposition that communicates the benefits of working with your firm within your chosen accounting niche.

Tailor all your marketing efforts to reach and engage with your target clients effectively, whether through industry-specific events, online channels, or targeted advertising campaigns. Reinforcing your brand messaging will help to build credibility and attract clients within your niche.

The top niches for accounting firms

In this section, we'll tell you about our top picks for accounting firm niches.

Farming and agriculture

Accounting firms are well-placed to help rural farming clients navigate several issues due to the complexity of the business. Agriculture and farm accounting is a popular accounting firm niche, as by its very nature, people in the farming community tend to do the work of multiple people.

Staying on top of the numbers can be hugely beneficial for this industry, enabling farm accounting firms to become an essential part of the whole operation.

Farm accounting is about so much more than bookkeeping and taxes, so accounting firms using Access Ledger can easily track livestock for their farming clients. Our general ledger software update includes automated livestock journals based on quantities and stock values, saving you the time and effort of calculating these manually.

Freelancers and sole traders

With the rise of the gig economy, which has only increased since the COVID-19 pandemic, accounting firms should consider freelancers and sole traders (also known as solopreneurs) for a lucrative niche.

Freelancers and sole traders are two of the most straightforward industries in which to specialise. By their nature, these businesses undertake simple financial transactions compared to larger businesses with more complex needs.

Accounting firms looking to focus their business niche in this area should consider developing tax planning, expense tracking, and consultancy services.

Real estate and property management

Accounting firms can look to real estate agents as potential clients to focus on; with real estate development, property valuation, rent collection as a revenue stream, and predictable income, they can often be one of the most lucrative accounting niches for firms looking to specialise their accounting offerings.

Accounting firms targeting the real estate sector can carve out their accounting services to include financial reporting, lease accounting, or the financial analysis of real estate investments.

Healthcare professionals

Accounting firms can develop a profitable niche around healthcare professionals such as doctors, dentists, and pharmacists.

Many firms choose to specialise in this field due to their need to operate in a particular environment with high levels of regulatory compliance, very consistent revenue streams, and insurance reimbursements.

Are you ready to find your niche?

Finding the right accounting niche is a strategic decision that can help accounting firms differentiate themselves, attract clients, and drive business growth.

By understanding your accounting firm's strengths, researching market opportunities, assessing client needs, and refining your niche based on feedback, you can position your firm as a trusted expert within your chosen niche market.

With a clear focus and tailored approach, accounting firms can establish a competitive edge and thrive in today's competitive environment for the accounting profession.

The Access Group provides smart and scalable solutions to help accounting firms looking to develop their niche. With a cloud-enabled accounting practice management software solution, your staff can work from anywhere as they provide unique accounting services to your chosen demographic.

Talk to a specialist about best-in-class, powerful accounting practice management software to help enable your niche accounting services.