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  • The Feasibility of Establishing A Tax and Accounting Firm in Digos City

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    The document discusses the feasibility of establishing a tax and accounting firm in Digos City. It provides background on the global and Philippine accounting services industry, noting increasing revenues. It then describes the largest accounting firms in the Philippines and their market shares. Finally, it outlines existing accounting firms in Mindanao that provide services to individuals and corporations, before stating the proposal to study establishing a new firm in Digos City specializing in accounting, taxation, and consultancy.

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    An introduction of a feasibility study.

    Original Title

    Feasibility Study Introduction

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    The document discusses the feasibility of establishing a tax and accounting firm in Digos City. It provides background on the global and Philippine accounting services industry, noting increasing revenues. It then describes the largest accounting firms in the Philippines and their market shares. Finally, it outlines existing accounting firms in Mindanao that provide services to individuals and corporations, before stating the proposal to study establishing a new firm in Digos City specializing in accounting, taxation, and consultancy.

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    2K views2 pages

    The Feasibility of Establishing A Tax and Accounting Firm in Digos City

    Uploaded by

    lorren4jean
    The document discusses the feasibility of establishing a tax and accounting firm in Digos City. It provides background on the global and Philippine accounting services industry, noting increasing revenues. It then describes the largest accounting firms in the Philippines and their market shares. Finally, it outlines existing accounting firms in Mindanao that provide services to individuals and corporations, before stating the proposal to study establishing a new firm in Digos City specializing in accounting, taxation, and consultancy.

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    THE FEASIBILITY OF ESTABLISHING A TAX AND ACCOUNTING FIRM IN DIGOS CITY

    INTRODUCTION

    Accounting firms are viewed as a firm of accountants that serve clients such as

    businesses involved in merchandising, manufacturing or providing services and to individuals.

    Common services offered in accounting firms are tax planning and preparation, operational

    bookkeeping and payroll, auditing and business development and evaluation (Leonard, 2018).

    According to an industry market research report made by IBIS World in December 2018,

    the revenue for the global accounting services industry is expected to increase at an annualized

    rate of 3.5% over the five years to 2018 to total $507.2 billion, including a 0.4% increase in 2018

    alone. Firms in this industry commonly provide a variety of services, such as the preparation of

    financial statements, the development of budgets and the review of auditing records for small,

    medium and large businesses.

    At present, the largest accounting and auditing firms are coined as “Big Four”. This

    includes PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst and & Young, and KPMG.

    Combined they perform more than 80% of the public company audits in the United States and

    gross more than $100 billion dollars in revenues annually (Averkamp, Harold).

    In the Philippines, Mark Ferrolino stated that SyCip Gorres & Velayo (SGV) is the

    largest professional services firm in the country. With eight offices across the country, it employs

    over 6,000 professionals from various disciplines that deliver value-added services to its clients.

    SGV, the Philippine member of Ernst and Young audited the financial statements of 513

    companies that made it to the latest top 1000 corporations ranking, adding 74 more than in 2015

    and increasing its market share to 51.3% from 43.9% in the previous year. Meanwhile, Isla

    Lipana and Co. (ILC), the Philippine member of Pricewater house Coopers (PWC) landed on the
    second spot with 152 clients, adding 12 more firms from the previous edition’s 140.

    Consequently, its market share increased 15.2% from 14% previously. R.G. Manabat and Co.

    (RGM), a member of Klynveld Peat Marwick Goerdeler (KPMG) International, followed with

    98 firms or 9.8% market share, down from the last edition’s 118. Punongbayan and Araullo, a

    member of Grant Thornton International, maintained its fourth spot as 45 of its clients landed on

    the top 1000 list, lower by four companies from the previous year. Completing the top five

    auditing firms was Reyes Tacandong and Co., a member of RSM Network which is administered

    by RSM International Ltd., with a 2.3% market share, or 23 client firms which made it to the list.

    However, this was lower than the 30 firms in the previous edition (Christine Castañeda, 2018).

    In Mindanao, specifically in Davao, firms including Santos-Cua AAC, Tax Base and

    Davao Accountants also offer cost-effective accounting and bookkeeping services, audited and

    assurance services, internal audit and risk advising services, tax advisory and compliance

    services, to individuals and corporations. It specializes in helping Davao City businesses,

    entrepreneurs, and startups in all their accounting needs. The firm provides services to at least

    500 client services in the country. Moreover, Reyes Tacandong and Co. is a member of the RSM

    Network, which is an independent accounting and advisory firm which practices in its own right.

    The said firms were granted accreditations to meet the demands in raising the bar excellence in

    the practice of profession.

    Based on the information gathered, the proponents decided to conduct a study on

    establishing an accounting firm which specializes in three areas, accounting, taxation and

    consultancy. The said firm will be located at Digos City, Davao del Sur and it is also open for

    potential clients from neighboring areas.

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