Get All Access for $5/mo

The Most Profitable Types of Small Businesses Accounting leads the pack while several service-based industries follow closely behind.

By Tanya Benedicto Klich

Opinions expressed by Entrepreneur contributors are their own.

If you're aiming for a lucrative business idea, it may be time to brush up on your number-crunching skills.

Accounting services topped the list of the top 15 small-business sectors by net profit margin over the last 12 months, according to Sageworks, a financial information company. The list was compiled using a database of more than 1,000 financial statements from private companies with less than $10 million in annual revenues.

The Sageworks data found that accounting led the pack in delivering the best profit margins, but service-based businesses in health care and real estate dominated the rest of the list.

Sageworks analyst Jenna Weaver notes that a lot of these service sectors are consistently at the top of the "most profitable" list. "Service-based industries often have very healthy bottom lines," she says. "Their overhead and equipment costs are often relatively low, and much of the time, it doesn't take a lot of upfront investment to get started."

Related: Start a Service Business

Weaver adds: "Often times, in cases like consulting, accounting, and legal services, you can get started right inside of your house, without even worrying about renting a space."

Check out the top 15 industries with the best net profit margins during the 12-month period ending July 31, 2014. For aspiring entrepreneurs, this may be the best place to start when considering new business ideas. (Note: Net profit margin has been adjusted to exclude taxes and include owner compensation in excess of their market-rate salaries.)

The Most Profitable Types of Small Businesses

Credit: Sageworks, a financial information company (www.sageworks.com)

Related: 5 Fast-Growing Industries Ripe for Entrepreneurs

Tanya Benedicto Klich

Data & Featured Lists Editor

Tanya Benedicto Klich is a data and lists editor at Entrepreneur.com.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Growing a Business

How Visionary Leaders Transform Curiosity Into Groundbreaking Ideas

Lee Brian Schrager, founder of the South Beach Wine & Food Festival, discusses the spark that launched FoodieCon, his best practices for running popular food events, and why all business owners need to adapt to social media trends.

Business News

Homeowners in These 10 States Pay the Most in 'Hidden' Upkeep Costs

Hidden home costs pile on top of mortgage payments.

Data & Recovery

Get $60 off This Portable VPN Travel Router

Why keep paying for a VPN service when you can have a tiny, lightweight piece of hardware that can provide you with a lifetime of maximum VPN protection?

Money & Finance

Avoid These 10 Mistakes Entrepreneurs Make with Money

Despite the challenging statistic that only 5% of startups survive beyond five years, common financial pitfalls often contribute to their failure. Through personal observation, I've identified the prevalent financial mistakes made by entrepreneurs.

Growing a Business

5 Books to Help You Motivate, Unify and Build Perspective

In a post-Covid world, check out these must-read books to help build a more resilient organization, create a modern work culture and maintain a powerful growth mindset.