24 Jan Benefits of Niche Accounting Vs General Accounting
Should an accounting business offer their services to clients from a range of industries or a specific industry? Some accounting firms may choose to target specific industry clients because their employees know the ins and out of that industry. Others may target a broad range of clients from different industries to focus on volumes. What’s the best model for you?
The answer depends on the goals of your company and the aspirations of the people that are part of it.
Keep reading for a complete analysis of benefits of being a generalist firm or a specialist firm in the accounting industry.
Benefits of the Niche Accounting business model? (Specialists)
- Targeting clients in a specific industry allows you to differentiate yourself from other players by positioning yourself as an expert in the field of the client. You can tailor your services and market them in words specific to the field. For example, you may specialize in estate/trust accounting, mergers and acquisition accounting or accounting for construction clients.
- Being a specialized accountant will allow you to charge a premium for your customized expertise.
- Clients that are similar to the ones you’re working with will be drawn to your business because you’ll stand out to them.
- Working in one industry will allow you to dig deep in the issues and intricacies that are relevant to that industry. This experience will add perspective and value to the services you provide be it accounting, bookkeeping, compliance and/or advisory services.
Benefits of the General Accounting business model (Generalist)
- A generalist model is one that caters to clients from any industry. A bigger pool of potential clients means you can focus on volume of service sales rather than margins.
- Since you won’t be spending your time learning the ins and outs of an industry and the specific needs of clients from that industry, you can focus instead on growing the number of services you offer. For example, you could include advisory services to your portfolio and market them to small businesses from diverse industries that need business consultants with an accounting background.
- You can experience economies of scale and improve operational efficiency by automating repetitive tasks. This will save you time and money.
Whether you go for a generalist or a specialist model, knowing your target market, offering services that fit that market and at the price point that it competitive in the market are all key to success.
CONTACT US when you’re ready to grow your accounting team.