For someone interested in becoming an accountant, healthy finances are obviously important. Someone interested in managing money for others is likely fairly capable of managing money for themselves. According to a recent study by Sageworks, a financial information company, accounting firms represent the most profitable business industry sector in the U.S.
With a net profit margin of 19.6 percent, they beat out the 16 percent profit in real estate leasing and 15.8 percent in automotive rental by far. A second ranking that specifically focused on small businesses with less than $5 million in annual revenue also found accounting firms ranked at the top of the list.
Sageworks’ analysis was based off of private statements filed in the previous fiscal year leading up to August 27, 2015. Taxes were excluded and owner compensation over market salary were included as determining factors. Private companies are growing twice as fast as they have been in the past, according to Sagework. Their analysis identified the past year as the healthiest year for private companies in the past decade.
Privately owned companies drive the vast majority of the U.S. gross domestic product, with most states seeing 80 percent or more of their GDP resulting from the work of private companies. Overall, U.S. private companies are averaging a net profit of 7.3 percent. The healthy growth in private businesses this year paints an extremely positive picture of the American economy in the years to come.
With accounting firms leading the charge, entering into the accounting field means stepping into the most profitable field in a healthy economy that is working its way back to being the best in the world.