Precision is paramount in business. Every cent counts and every transaction can make the difference between financial success and failure.
That’s where bookkeepers step in — they are the ones who work behind the scenes to keep financial records in order. But being a proficient bookkeeper is just the first step on your path to success. Standing out from the crowd and attracting enough clients is a much tougher task.
If you want to monetize your skills, you have to find the right bookkeeping niche.
In this post, we’ll show you:
- How to identify a promising niche as a bookkeeper
- Some of the best and fastest-growing niches in bookkeeping
- Benefits of choosing the right option
Let’s dive in!
How to pick a bookkeeping niche that suits you
Before we show you our top 10 suggestions, it’s important to understand the actual selection process. Here’s how you should choose the niche that suits your expertise and personality.
Start with self-assessment
The first thing you ought to do is assess your own skills and interests. We encourage you to consider the following questions:
- What industries or types of businesses are you passionate about?
- Do you have any specialized knowledge or certifications?
- Are there specific accounting software platforms you're proficient in?
If you answer these questions honestly, it will be easier to narrow down your professional focus.
Do some market research
Tip number two is to research the bookkeeping market in your area and online. This should help you identify gaps or underserved niches. The process may vary from location to location, but it’s good to consider these factors:
- Niche demand
- Industry reports to gather data
- Signs of growth
- Client demographics and profitability (if possible)
After that, you can create a list of potential niches that align with your expertise while showing enough demand.
Competition analysis
The next step is to analyze the level of competition in each niche. A niche with less competition might provide better opportunities for differentiation and attracting clients, but you must also investigate the pricing strategies and services offered by competitors in those fields.
Specialization requirements
Last but not least, you should determine if there are any additional specialization requirements in a given niche. This might involve acquiring new certifications or attending industry-specific training.
Best niches to find potential clients
We explained the most important decision-making factors, but now let’s see some of the best niches where you can find profitable clients.
1. Small businesses
According to the Office of Advocacy, there are over 33 million small businesses in the US alone, and most of them lack the expertise to handle their financial records accurately. They need a credible bookkeeping service to stay compliant and make informed financial decisions.
You can engage in this niche to help small businesses with:
- Monthly bookkeeping
- Tax compliance
- Tax planning
- Payroll processing
- Sales taxes
2. Real estate agencies
Real estate agencies conduct countless transactions, including property management, commissions, and rental income. Accurate bookkeeping is crucial for them to maintain transparency and compliance.
What’s best, reports show that over 100 thousand real estate brokerage firms operate in the US — not to mention other countries around the world. With so many potential clients, you might as well try your luck and skills in this particular industry.
Related: How to create the perfect real estate client intake form
3. E-commerce businesses
E-commerce businesses need accurate bookkeeping and accounting services to manage transactions, track inventory, keep an eye on the cash flow, and optimize their financial operations. It’s also one of the fastest-growing industries worldwide, with a market size of well over $16 trillion.
4. Digital marketing agencies
Digital agencies specialize in online advertising, SEO, social media marketing, and many other areas of online marketing. As such, these companies often manage advertising budgets on behalf of clients and need to track marketing costs against ROI (return on investment).
They constantly require accurate financial management to demonstrate the value they bring to their clients. In such circumstances, there’s more than enough work for bookkeepers in this lucrative niche.
Related: How to streamline your agency client onboarding
5. Medical and healthcare practices
Healthcare providers, including doctors, dentists, and therapists, deal with two critical tasks:
- Managing their finances
- Complying with healthcare regulations
That’s not a job healthcare practices can do on their own. The best thing for you as a bookkeeper is that the market size of healthcare services is projected to reach a staggering $21 trillion by 2030.
6. Legal and law firms
Law firms have unique financial and accounting needs that require a deep understanding of legal billing practices, trust accounting, and compliance with specific regulations.
Bookkeepers who specialize in this niche can provide tailored services that meet these requirements effectively. The same goes for accounting firms that focus on legal professionals.
Related: How to create the perfect law firm client intake form
7. Nonprofit organizations
Some sources claim that there are well over 10 million nonprofits and NGOs globally. Such organizations have unique bookkeeping and financial reporting requirements, mainly because they need to maintain transparency for donors and government regulations.
That means you could focus on providing advisory services in this field and add nonprofits to your client base.
8. Freelancers and solopreneurs
The gig economy is growing big time. According to Upwork's 2022 Freelance Forward Survey, nearly 40% of the US workforce (60 million people) performed some sort of freelance work in the past year. Almost all freelancers and solopreneurs require bookkeeping services such as:
- Income management
- Tax preparation
- Expense management
9. Restaurants and food service businesses
This industry is not only huge but also highly specific.
For example, cost control is very difficult, as food and labor costs can fluctuate significantly. A specialized bookkeeper can help businesses analyze variances and implement cost-saving strategies.
The same goes for inventory management because restaurants deal with perishable inventory, which requires precise tracking. Bookkeepers with expertise in this area can help businesses optimize their inventory turnover and reduce waste.
10. SaaS companies
SaaS (Software as a Service) companies offer software solutions to businesses on a subscription basis, which means they usually have complex financial structures. That includes recurring revenue models, subscription billing, and various expense categories like software development or customer acquisition costs.
Each of these businesses needs accurate financial tracking to understand customer churn, customer acquisition costs (CAC), and the lifetime value of customers (LTV). They also need to comply with complex revenue recognition standards like ASC 606.
Benefits of choosing a niche as a bookkeeping or accounting firm
Sticking to a niche or two should ultimately make your firm more profitable, but that’s far from being the only advantage. Here are some other benefits of providing a specific type of bookkeeping services.
- Specialized expertise: Focusing on a niche allows you to develop deep knowledge in a specific industry, which adds quality to the services you provide.
- Targeted marketing: Niche specialization enables more cost-effective marketing efforts because you have a highly targeted audience.
- Higher client retention: Clients in a niche are more likely to stay with the firm long-term because of the specialized knowledge and tailored solutions provided.
- More referrals: Clients within a niche are often more likely to recommend your services to similar businesses, thus creating a self-sustaining referral network.
- Clear brand identity: If you build a niche firm, it’s easier to establish a memorable brand identity that resonates with your target clients.
- Reduced competition: Concentrating on a single niche usually means facing fewer competitors.
- Customized service offerings: Finally, niche-based bookkeeping allows you to tailor your service packages in a way that meets the unique needs of your clients.
A niche is the shortcut to success in bookkeeping
Finding a profitable niche is the key to unlocking your full potential as a bookkeeper and achieving professional success.
Remember, the key is to pinpoint a few options that don’t show any signs of slowing down in the years to come. After that, it’s all about choosing a niche that matches your skills and professional interests.
