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With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017


Accounting Firm SWOT Analysis

 

Strengths

 

The primary of owning and operating an accounting firm is that it is generally immune from negative changes in the economy. People, especially small business owners and real estate investor, are going to continue to need advice and preparation of their taxes and financial statements in any economic climate. As such, these are only services that a properly licensed CPA can provide to the general public. Additionally, the licensure requirements set forth by the states will continue to ensure that only the people that have met stringent educational and experience requirements will be able to practice in this field. One of the other strengths of this type of business is that there are many forms of revenue that can be generated on a monthly, quarterly, and yearly basis. These revenue streams include ongoing bookkeeping coupled with quarterly/yearly tax filings.


Weaknesses

 

As it relates to the weaknesses of an accounting firm, there are substantial competitive threats. The costs of starting a new accounting firm are low. However, by differentiating a company as a CPA firm, the business can avoid some issues pertaining to firms that only have enrolled agents as their primary practitioners.

 

Opportunities

 

The opportunities for an accounting firm are tremendous. Most importantly, many CPA firms are able to implement programs that generate highly recurring streams of revenue from their services. This, again, includes bookkeeping services. One of the other common ways that accounting firms are able to generate predicable revenue (among licensed CPAs and enrolled agents) is through the sale of "audit insurance." These programs insure that a potential client that may be audited is protected against substantial fees for managing this process. Additionally, CPA, enrolled agent, and general accounting practices are frequently sold when an individual practitioner decides to retire or relocate. As such, many accounting firms can be acquired relatively inexpensively if an accounting firm owner is seeking to expand via acquisition.

 

Threats

 

The threats faced by an accounting firm are somewhat minimal. This is due to the fact that, given the complexity of tax law, the demand for companies that can properly filed income tax returns (for both individuals and businesses) is tremendous. The regulatory environment is unlikely to change in complexity. The primary threat faced by accounting firms is other companies that operate in an identical capacity. Any individual who has met the appropriate requirements may acquire a certified public accountant or enrolled agent license. However, these requirements have become more stringent over the past 10 years. As such, this is really the only ongoing threat faced by an accounting firm.


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