It’s no surprise that the majority of businesses expect (or even require) their accountants to be specialists in their field. Why? Because generalism is common and laser-focused expertise is not.

There was a time when you could open the yellow pages (remember those?), close your eyes and pick an accountant to prepare your taxes. You could choose someone different every year, and the end result would probably be pretty comparable.

But, could you close your eyes and pick a guru at SaaS startup for business structure planning? Doubtful. Could you randomly choose an accountant to advise on revenue recognition for a local non-profit? That may prove to be difficult.

In fact, The Sleeter Group has found that 62% of businesses prefer or require specialization, which makes sense. With products and services becoming increasingly sophisticated and nuanced, it can be expected that CPAs who are career

THE CLOUD CAN TRANSFORM A SPARSE LOCAL MARKET INTO

A SUBSTANTIAL NATIONWIDE

OPPORTUNITY.

INDUSTRY-SPECIALIZED ACCOUNTING

FINDING OPPORTUNITY THROUGH FOCUS

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generalists may be inexperienced in the complexities of any given industry and may find it difficult to compete and stay relevant into the future.

It appears as if accountants looking to grow their practice, or at least maintain a client roster, are beginning to adapt to this change, with nearly 33% of accountants adopting, or planning to adopt specialization (Source: AccountingWeb).

FOCUS ON WHAT YOU KNOWYour life experience may be the best place to look. We’ve all got previous positions, previous careers entirely, or things we’ve learned elsewhere along the way. It’s this type of first-hand knowledge that can serve an accountant well when looking to delve into niche practice. After all, the real-life knowledge of pain points and day-to-day operations can merge with your accounting expertise to make your services a highly-valuable asset to your clients.

Maybe you worked in a record store throughout college and were responsible for tracking inventory. This could give you a unique perspective on retail operations from an accounting perspective. Or maybe you had a previous career in agribusiness. This could lend itself extremely well to that industry, where reliable equipment is a day-to-day necessity, and “buy-versus-lease” decisions are extremely common.

FOCUS ON YOUR INTERESTSWhat excites you? What are you passionate about? What company or industry would you pursue if you weren’t an accountant? To be successful as a niche practitioner, you obviously need a depth of knowledge, but it helps to have a deeper interest when compared to general services.

Depending on the nature of the specialized work, you will likely need to continue to offer general services (e.g. tax returns, etc.) to maintain a steady revenue stream, but seasonal and/or periodic specialized services can be an excellent way to supplement the business and keep you engaged in the work at the same time.

62%Of SMBs prefer or even require industry-specialized accounting expertise

33%Of Accountants are currently (or planning to) specialize their practice

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FOCUS ON MARKET NEEDSOf course passion and knowledge don’t always result in a viable business, so identifying gaps of service, needs of businesses, and technology trends is key.

Is your market particularly attractive for particular sectors or business types? If so, there may be opportunities based on the existing business ecosystem. For example, NerdWallet has found that freelancers thrive in some areas, with Scottsdale, AZ, leading the way with the highest average self-employment income among surveyed cities. Maybe there’s a way to offer specialized services for 1099 workers?

The Small Business Administration and Board of Labor Statistics are also gold mines of information. Geographic business makeup, industry growth, employment projections, you name it, and you’re likely to find it there.

• Small Business Administration• Board of Labor Statistics• MelissaData SIC Search• Small Business Development Centers

You may also consider leveraging the data provided by researching SIC (Standard Industrial Classification) codes. This data can be especially helpful when trying to establish a composite of your market’s business landscape, and may shed some light on potential opportunities right in your backyard.

Not only that, but many tools available provide direct marketing opportunities based on SIC data, providing opportunities not just to identify, but actively reach prospective clients based on relevant criteria.

TURNING PASSION INTO PROFIT

Are you a foodie? Depending on your location, restaurant/hospitality accounting services may be a great avenue to explore. Familiar with the taxation requirements for food trucks? If so, there may a be a viable and underserved market just waiting for the go-to expert.

Interested in tech innovation? Maybe offering services focused on tech startups is worth considering. Among the most

common questions encountered by startups is choosing a business entity structure and how it relates to taxation.

These are just a few examples, but there may be lucrative opportunities that match your skills, experience, and interests. Not only would your services be focused, but it would also allow you to focus on work that is more professionally rewarding.

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CONSIDER EMERGING MODELSIt’s hard for even the most tech-savvy individuals to keep up with emerging technologies and business models, much less the accounting and tax implications included. As pointed out by Deloitte, “The line between products and services is becoming increasingly blurry.”

As businesses adopt these new models, they will need special assistance not only with basic compliance services, but also someone to turn to for advisory services. Getting up to speed on these specifics now could put you well ahead of the game and position you as a go-to resource for this type of work.

To put it into perspective, below are some stats that illustrate not just the proliferation of these new models, but also the opportunities inherent within. The opportunities are abundant for practices looking to future-proof their business. Considering how the capabilities of the cloud all but eliminate the concept of distance, what may have previously appeared to be a relatively sparse local market can turn into a substantial nationwide opportunity. Combine that with some effective personal branding and you have the basic components or carving out an effective niche practice.

7.6MPredicted Americans in the gig economy by 2020

$67BProjected global SaaS Market by 2018

20.8BThe amount of “connected” objects projected in 2020

• Delineation of contract elements and units of accounting• Accounting for contract cancellations and modifications• Implications of fixed vs. usage-based billing models

• Identifying deductions• Employee vs. contractor classifications• Regulatory/tax guidelines

• Opportunities for deeper data analysis and insight• Expand/partner to expand into IT consulting services• Data security and governance

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THE LINE BETWEEN PRODUCTS & SERVICES IS BECOMING

INCREASINGLY BLURRY.