In the face of anemic growth, CPA firms will likely move more into ancillary services, including business valuation.
Annual revenue growth for the U.S. accounting services industry, including CPA firms, is expected to be 1.3%, to a total of $72.9 billion, according to a report from research firm IBISWorld. Over the next five years, annual growth is estimated at 1.9%.
To counter this tepid growth, accounting professionals have several options. One is to branch off into areas that require accounting expertise, such as business valuation, litigation support, and forensic accounting. Another option is to develop a niche market—focus on a specific industry and expand into consulting services to help clients boost profitability. In the area of valuation, CPA firms can also help business buyers and sellers determine values. Another area where valuation can come into play is dispute resolution services, valuing property in divorce settlements. Valuation of property or businesses in a decedent’s estate is another area CPA firms can target.
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