Accounting is the Most Profitable Industry in the U.S.; How is Your Profit Margin?
A recent article written up by Mary Ellen Biery, a Research Specialist at Sageworks, says that based on their research the privately held accounting and tax profession has the highest profit margin of any industry in the country. “Companies in these three do-it-for-you industries generate net profit margins, on average, that exceed 15 percent, which is more than twice the average for all industries, according to Sageworks’ financial statement analysis of privately held companies…Accounting, tax preparation, bookkeeping and payroll services firms generated an average net profit margin of 19.6 percent. This industry includes…offices of Certified Public Accountants and tax preparers, who typically generate even higher margins than the category average…” So for CPA and tax firms the profit margin is exceeding 20% in part because your type of business has less overhead costs compared with other industries but more importantly it’s just a very valuable service that every company needs to succeed. This is not a new phenomenon either, “Many of the industries were repeats from previous years’ rankings. For example, firms that provide accounting, tax preparation, bookkeeping and payroll services have been atop the list for the last several years.” The reason I bring all this up is because this means you and your business should be absolutely thriving. The numbers bear that out. For those of you who are not thriving my question, why? You are in the most profitable industry in the United States (according to this research) so why are you not a raging success? The opportunity is clearly there, so what is holding you back from achieving the success so many of your peers are enjoying? The answer is simple, it’s marketing (or lack thereof.) So if you are seeing these statistics and getting frustrated because they don’t represent your reality then you really need to call NCI today. We can help you gain the competitive edge you need to realize exceptional, nation-leading profits through the power of an excellent marketing program designed, tested and proven for your specific industry and needs. Our marketing programs will show you how to identify and connect with a profitable and ubiquitous target market and how to get in front of business owners who have a need for your services. Then we’ll show you step-by-step how to present your services in a desirable way, how to overcome the most common objections you will hear during this process and how to price our specifically designed package of accounting services fairly and accurately during the initial meeting. If that sounds like too much work (and it is a lot of work) then we also have our Plan 2 program to take the vast majority of that off of your plate and into the hands of capable marketing professionals, interviewed, hired and trained right at your office by one of NCI’s Senior Account Executives.
So there are no excuses for you to not be living the life you dream about. You’re already halfway there! You picked the right industry and the right skill set to make a great living. The final piece of the puzzle, if you’re struggling or want more, is a good marketing plan. NCI offers just that. We’ve helped thousands of accountants, EAs and CPAs across the country for over 30 years and now it’s your turn. Call 1-800-338-0778 today to speak with one of our representatives so we can learn about where you are in business now and where you want to be in the near future, then we’ll help you get there.
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Sageworks is a financial information company that provides loan portfolio and risk management solutions to financial institutions and financial analysis and valuation applications to accounting firms and private companies.