Start your business
Start your business
Run your business
Run your business
Grow your business
Grow your business
Accountants and Bookkeepers
Accountants and Bookkeepers
- Accountants and Bookkeepers
  Learn how accountants and bookkeepers can be productive in these articles & guides
- Learning and Development
  A range of informative content to enhance your QuickBooks experience.
Updates
Updates
- Product Updates
  Watch this space for monthly product updates.
- Intuit News
  Latest news, articles & guides

Need help choosing a plan?

1800 917 771 Schedule a call

Schedule call

Two people are shaking hands, discussing accounting for a niche industry

To niche or not to niche: That is the question

March 20, 2024

To put it mildly, Hamlet was challenged to decide what to do and what direction to take. In our profession, we also have had to make decisions; after all, we’ve heard it for years: “You need to go deep into a specific industry or focus on a niche to succeed as an accounting firm.”

A niche is usually defined as a specific industry or vertical, and some may even broaden the definition to include a business stage, such as a startup, turnaround, transition planning, or even IPO. Here, we will limit our definition of “niche” to a particular industry or vertical, so let’s consider the pros and cons of specialisation in accounting.

4 pros to industry niches

Concentrating on a market niche has several clear upsides:

1. Acquiring deep and specialised knowledge of an industry can give your firm an advantage. For example, a nonprofit may have complex setup stipulations if it receives grants or specific reporting requirements for donors at the end of the year. Construction companies have different issues, including managing contractors, applying for government bids, and job costing, which can be complex and tedious.

Learning these nuances and processes can be time-consuming, leaving firms frustrated and less profitable if the research to complete a task is for a one-off client. However, firms that dive deep into a specialised industry can apply that information across more clients, multiplying the value of the time spent learning.

2. With specialised knowledge, your firm can create custom processes specific to a niche. Knowing that all construction clients need cash flow reporting and job costing allows for easier client onboarding and a better customer experience. This also leads to less frustration among team members who excel in standardised workflows.

3. A deeper understanding of an industry’s processes gives your team knowledge about apps commonly used in that industry. Your firm can become a trusted expert to support clients, and provide insight into their strengths and weaknesses. This deeper knowledge will grow your team’s confidence and ultimately deliver a better experience for the client.

4. Because of specialisation, your firm can monetise its expertise through higher fees. Clients that recognise you are offering faster, more informed advice, along with the expertise to help them anticipate road bumps in the future, will be willing to pay for these true value-adds.

Disadvantages: Yes, there are a few

What are the disadvantages of having a firm specialty?

1. You and your team may find that focusing exclusively on one type of industry is a little boring. Having some degree of diversification in clientele can bring positive challenges that translate to interesting and more fulfilling work for your team. Due to the labour shortage among bookkeepers and accountants, this concern shouldn’t be discounted.

2. If your selected niche has an economic downturn, your firm could be exposed to an unforeseen loss of clients. This became apparent when pandemic shutdowns disproportionately affected firms specialising in restaurants and retail stores.

3. If the niche is just too small, there may not be enough clients to warrant a specialisation. Assuming your firm already has a presence in the industry, you’ll need to determine if growth is a priority. If it is, you’ll need to add more clients or increase the services offered. Other questions come about in this decision process as well: “What about our existing clients in other industries?” and “Will this make us less attractive to clients outside the niche industry?”

The pros outweigh the cons

I wouldn’t be doing you justice if I didn’t tell you about the cons to niching, but here are my observations:

1. Just because you pursue clients in a niche industry does not mean you have to let go of clients outside that industry. You can continue working with existing clients and even take other clients as usual. Having a niche just allows you to focus your marketing efforts.

2. About clients outside your niche industry … newsflash: most will not care! You’ll find they don’t mind that your firm has a focus, especially if you retain a group of clients outside your niche or work with multiple industries.

3. Team members who want to retain a diverse clientele are great candidates to continue serving clients in the “other” category. They can also stay engaged through specialty projects, onboarding new clients and team members, or researching new apps and updated processes.

4. Regarding a niche industry downturn—you can retain a healthy breadth of industries served or broaden your clients’ geographic footprint within your niche to reduce the risk of a regionally focused downturn. And even in a downturn, your clients will need your advice more than ever.

You’ve probably guessed that I like being in a niche. Keeping a percentage of industry diversification and expanding outside your region should reduce the risks of focusing on a niche industry or vertical. All things being equal, it pays to be a specialist!

Learn more about Client Advisory Services

Building your Client Advisory Services offering is about people, processes, and technology. Download our Grow Your Firm CAS eBook to learn more, or read more about these elements in our client advisory services series:

People

Processes

accountants and bookkeepers

5 steps on how to build trust and win new clients

June 18, 2024

accountants and bookkeepers

Driving team efficiencies and retaining top talent with training and technology

June 14, 2024

accountants and bookkeepers

Driving Efficiencies with AI

August 27, 2024

Looking for something else?

Get QuickBooks

Smart features made for your business. We've got you covered.

See how it works

Help Me Choose

Use our product selector to find the best accounting plan for you.

Choose your product

QuickBooks Support

Get help with QuickBooks. Find articles, video tutorials, and more.

Start learning

A computer screen showing a picture of a computer.

TAKE A NO-COMMITMENT TEST DRIVE

Your free 30-day trial awaits

Our customers save an average of 9 hours per week with QuickBooks invoicing*

No credit card needed

Cancel anytime

Unlimited support

By entering your email, you are agree to our Terms and acknowledge our Privacy Statement.

- - QuickBooks reserves the right to change pricing, features, support and service at any time. Prices are in AUD and include GST. See our Terms of Service for further information.
  - Pricing: All prices are in AUD and include GST.
  - ProAdvisor Program: Please find the terms of our ProAdvisor program here.
  - From $3, $4, $6 for 3 months: For new subscribers, enjoy a $3, $4, $6 price subscription on QuickBooks Online Simple Start, QuickBooks Online Essentials or QuickBooks Online Plus for the first 3 months of your subscription (Offer). The discount will applied from the date of your enrolment and will continue for 3 months. From month 4, you will be charged the then current monthly retail price for your subscription. See current prices here. QuickBooks Payroll and QuickBooks Time prices are not eligible for any discount and will be invoiced separately according to your usage on a monthly basis during your subscription. Intuit reserves the right to request information to verify the eligibility of a purchaser of the Offer. Acceptance of such verification information is at the reasonable discretion of Intuit, which may revoke the Offer and impose a monthly cost for the subscription at the then current retail prices, at any time if it considers the purchaser is ineligible for the Offer.
  - 70% off for 3 months: For new subscribers, enjoy a 70% off price subscription on QuickBooks Online Advanced for the first 3 months of your subscription (Offer). The discount will applied from the date of your enrolment and will continue for 3 months. From month 4, you will be charged the then current monthly retail price for your subscription. See current prices here. QuickBooks Payroll and QuickBooks Time prices are not eligible for any discount and will be invoiced separately according to your usage on a monthly basis during your subscription. Intuit reserves the right to request information to verify the eligibility of a purchaser of the Offer. Acceptance of such verification information is at the reasonable discretion of Intuit, which may revoke the Offer and impose a monthly cost for the subscription at the then current retail prices, at any time if it considers the purchaser is ineligible for the Offer.
  - 50% off for 12 months: For new subscribers, enjoy a 50% discount off the current monthly retail price for QuickBooks Online Simple Start, QuickBooks Online Essentials or QuickBooks Online Plus for the first 12 months of your subscription (Offer). The discount will applied from the date of your enrolment and will continue for 12 months. From month 13, you will be charged the then current monthly retail price for your subscription. See current prices here. QuickBooks Payroll and QuickBooks Time prices are not eligible for any discount and will be invoiced separately according to your usage on a monthly basis during your subscription. Intuit reserves the right to request information to verify the eligibility of a purchaser of the Offer. Acceptance of such verification information is at the reasonable discretion of Intuit, which may revoke the Offer and impose a monthly cost for the subscription at the then current retail prices, at any time if it considers the purchaser is ineligible for the Offer.
  - 50% off for 3 months (existing subscribers): For existing QuickBooks subscribers who upgrade from an existing subscription to QuickBooks Online Essentials, Plus or Advanced, enjoy a 50% discount off the current monthly retail price for 3 months of your subscription (Offer). The discount will be applied from the date you upgrade in-product and will continue for 3 months. From month 4, you will be charged the then current monthly retail price for your subscription. See current prices here. QuickBooks Payroll and QuickBooks Time services and prices are not eligible for any discount and will be invoiced separately according to your usage on a monthly basis during your subscription. Intuit reserves the right to request information to verify the eligibility of a purchaser of the Offer. Acceptance of such verification information is at the reasonable discretion of Intuit, which may revoke the Offer and impose a monthly cost for the subscription at the then current retail prices, at any time if it considers the purchaser is ineligible for the Offer.
  - Free Trial: First thirty (30) days of subscription to QuickBooks Online, QuickBooks Self-Employed and QuickBooks Payroll (including QuickBooks Advanced Payroll), starting from the date of enrolment, is free. During the free trial, you may pay any number of employees using QuickBooks Payroll free of charge. To continue using QuickBooks after your 30-day trial, you'll be asked to present a valid credit card for authorisation and you'll be charged monthly at the then-current fee for the service(s) you've selected.
  - QuickBooks Payroll powered by Employment Hero: Payroll services are offered by a third party, Employment Hero. QuickBooks Payroll is only accessible via QuickBooks Online subscriptions. You will be charged $6.00 (incl. GST) per month for each ‘active employee’ paid using QuickBooks Payroll. An ‘active employee’ is one who has been paid at least once in the billing month. For Advanced Payroll, there is an additional monthly subscription fee of $10 (incl GST). Pricing, terms and conditions, including service options, are subject to change.
  * Employment Hero was voted the leading payroll solution for SMBs <50 employees (Australian Payroll Association 2021 Payroll Benchmarking Study)
  - Customer support: Call or chat to an expert for QuickBooks Online Accountant, QuickBooks Simple Start, Essential, Plus, and Advanced or use in-product QB Assistant and chat for QuickBooks Self-Employed. You'll also find useful resources in the QuickBooks Community.
  - Compatible Devices: QuickBooks Online, QuickBooks Self-Employed and QuickBooks Payroll require a computer with Internet Explorer 10, Firefox, Chrome, or Safari 6 and an Internet connection (a high-speed connection is recommended). The QuickBooks Online mobile app works with iPhone, iPad, and Android phones and tablets. QuickBooks Online and QuickBooks Payroll are accessible on mobile browsers on iOS, Android, and Blackberry mobile devices. Devices sold separately; data plan required. QuickBooks Payroll cannot be used on the mobile apps. Not all features are available on the mobile apps and mobile browser. QuickBooks Online mobile access is included with your QuickBooks Online subscription at no additional cost. Data access is subject to cellular/internet provider network availability and occasional downtime due to system and server maintenance and events beyond your control. Product registration required.
  - Get paid faster: Get paid 2x faster invoicing with PayPal
  - * PayPal and QuickBooks customers get paid on average in less than 5 days, which is over 5 days faster than the average for invoices that get paid with other payment methods. Data is for paid invoices that were created in QuickBooks in Australia between 8.07.24 and 8.01.25
  - Tax deductions: Tax deductions not guaranteed due to being subject to user data entry errors. Mileage calculation provided by the Australia Taxation Office - 85 cents per kilometre for the 2023-2024 income year. To a maximum of 5,000 business kilometres per car (Deductions are only applicable to cars)
  - Customer Service Awards: Excellence in Customer Service Award at the CX Australia Awards 2022
  - Multiple file discount: Multiple file discount applies to QuickBooks Australia customers only and valid when signing up for more than one QuickBooks Online subscription in one order. Further terms and conditions available here. Not applicable to QuickBooks Self Employed.
  - Reviews: GetApp, Capterra, Google Play Store, Apple App Store reviews as at date 08/01/24.
  - Cost per day claim (annual): Based on a QuickBooks Simple Start plan at its regular retail price of $313 per year and a 365 day year.
  - Annual Billing: You may pay for your QuickBooks Online subscription on an annual, upfront basis to enjoy a discount on the current fees. If you use QuickBooks Payroll powered by Employment Hero, your payroll costs will still be charged monthly to your nominated payment method in accordance with your usage as set out here. If you cancel your QuickBooks Online subscription within the pre-paid 12 month period, you will not be eligible for a refund, but will retain full access to your QuickBooks Online subscription for the remainder of the 12-month period. Unless cancelled by you prior, your annual subscription will auto-renew on the 12 month anniversary of your sign-up date using the billing details you have given us. Discounts, prices, terms and conditions are subject to change.
  - Over 7 million customers: Based on number of global QB customers (ecosystem) (7.1m) worldwide as of October 2022.
  - Free Onboarding: Applicable to Buy Now subscriptions on QuickBooks Simple Start, Essentials and Plus plans. Not available for QuickBooks Self-Employed.
  - Save Hours: Save up to an average of 29 hours per month with QuickBooks.
  - * Based on a survey conducted by Intuit Australia Pty Ltd in September 2022. Time saving is in comparison to previous accounting method, based on 184 responses from customers that saw time savings.
  - Get access to QuickBooks Tax: ***Access QuickBooks Tax, powered by LodgeiT, by becoming a member of the QuickBooks ProAdvisor Program (it’s free to join). Find out more about the ProAdvisor Program here, including the terms of the QuickBooks Tax offer in the Program here.
  - QuickBooks Time Disclaimers & Offers for Australia: For Important pricing offers and disclaimers with further information, please see here.
  - *Full terms and conditions for access to QuickBooks Tax, powered by LodgeiT as part of the the Proadvisor Program can be found here. QuickBooks reserves the right to change pricing, features, support and service at any time.
  - **Intuit conducted a study involving 56 interviews with accountants and bookkeepers who used Books Review for BAS preparation between March to December 2021 and found that when using Books Review, participants reduced the time spent preparing their clients BAS Reports by around 40%.
  - Our Terms of Service apply to all QuickBooks Online subscriptions. Please review them carefully.

Intuit helps put more money in consumers’ and small businesses’ pockets, saving them time by eliminating work, and ensuring they have confidence in every financial decision they make.

To niche or not to niche: That is the question

4 pros to industry niches

Grow Your Firm With Client Advisory Services

Disadvantages: Yes, there are a few

The pros outweigh the cons

Learn more about Client Advisory Services

Related Articles

Looking for something else?

Get QuickBooks

Help Me Choose

QuickBooks Support

Your free 30-day trial awaits