If you are a neighborhood CPA, it’s highly likely you have at least some small business owners as clients, but not everyone does and, statistically speaking, the market potential is high.
According to the NYS Society of CPAs, there are 664,532 CPAs in the US, while there are 29.6 million US small businesses representing 99.9% of businesses in the United States. It sounds like a business opportunity. Here’s what you need to understand in order to build your base:
Don’t They Already Have a CPA?
Is there really a market out there? Don’t many small business owners use tax software? No. According to a study by Office Depot, 70% of small business owners did not use tax reporting software in 2016 and 11% waited until the last day to file their taxes or asked for an extension.
Still not satisfied? Recent reports show 40% of US and Canadian businesses surveyed don’t even use an outside accountant. Those using them only did for specific services. Predictably, accounting services ranked highest at 76%.
The report made the case there’s a significant market for business advisory services. Another important point is how accountants typically get these clients as 58% of small businesses surveyed said they found their accountant through a referral. FYI: 27% report the accountant is a family member or friend.
Understanding the Small Business Market
Obviously, the small business market in the US is huge. But is it as good as it sounds?