Do Accounting Firms Really Need to Specialize?

[MrPrediluted]

Specialty/niche makes a huge difference. I focus on real estate developers/investors, primarily those based in my home state which has a rather unique business tax system despite being a tiny state. 90%+ of my client base are developers now, a level of focus that almost doesn't exist with other practitioners in the state. That level of specialty breeds way more new business than I am capable of servicing, even though prices are also some of the highest in the region.

But... First you need to find something you really enjoy doing, if you hate your niche, it will show.

[RodBurkert]

When I had my valuation practice, I specialized in tax purpose valuations for manufacturers and distributors. I recommend to my coaching clients that they specialize in a practice area or industry niche. I was an overachiever and did both.

[jacobschroeder]

I talked through some of the niche issues on a conference session for Nayo Taking Your Firm Virtual (haven’t read the book yet)

Horizontal niches vs vertical niches.
Vertical niches are industries.
Horizontal niches can be a lot of other items. By selecting your horizontal niche it may eliminate some vertical niches but not necessarily.

[akshayshrimanker]

Great video! As a solo practitioner I cast a wide net at first and then began to specialize in an industry vertical over time. It would have been great to specialize from the beginning, but working as a General Practitioner for so long was a great way to experience a broader range of problems to solve. Having a background as a general practitioner once you choose to specialize can be a competitive advantage for firm owners. Being a general practitioner can also be a great way to just keep the lights on in the beginning as you go through a ‘eat what you kill’ phase of building your firm. For my CPA colleagues who I’ve seen specialize from the start, I’ve noticed that they invariably end up augmenting their entrepreneurial journeys by working for/partnering with other firms.

[beetdiggingcougar]

That book really opened my eyes into how passive a lot of CPAs are. I can't remember the last time a client decided to find another provider because of cost, etc. Blair Enns' words will cut out the lame clients who need you to prove it to them. Life is too short for bad clients.

[DreamFirms]

Clients are hungry for accountants who specialize.

[cowboyjicjac]

Hi Jason! Do you know if accounting firms will hire you if your hair is a funky color? Like pink bangs?! Let me know! Thanks

[folorunsodada]

I still don’t believe in specialization and think specialization limits you.Just understand your role as an accountant and think through how to apply your knowledge to each sector/industry.Your key capability is accounting, tax and consulting and then apply those skills in solving problems in diverse sector. Read and understand different sectors, then apply your accounting skills to solving their problems.