The Future Prospect Of Hong Kong Accounting Firms In Mainland

The business environment in Hong Kong has been worsening since the outbreak of the Asian financial crisis in 1997. The downsizing of business activities in the territory results in diminishing demand for accounting services. Competition is intensified in the industry and all accounting firms have to face the hardship of losing customers and shrinking income. On the other hand, Mainland has recorded rapid economic growth in recent years. The increasing foreign investments following Mainland's accession to the WTO and the opening up of the accounting industry in coming years create myriad of opportunities across the border. Hong Kong accountants are eager to tap the huge market over there.The thesis is trying to ascertain the future direction for Hong Kong accounting profession and to identify solutions to the problems. At the same time, the counterparts in Mainland are trying to improve their working environment and quality of services as well as to commensurate with international practice. This thesis details the future role to be played by Hong Kong accountants and the contribution they may make to the peers in Mainland.The first paragraph outlines the business environment in Hong Kong after the Asian financial crisis and gives an introduction to Hong Kong accounting industry.The second paragraph analyses the opportunities brought along by Mainland's accession to the WTO.The third paragraph constitutes the main part of this thesis. It highlights the problems found in Mainland's accounting industry and the rooms for future development of the Hong Kong accountants. It also discusses the benefits brought along by the Hong Kong accountants on their participation in the market over there.The fourth paragraph describes the hardship and difficulties encountered by Hong Kong small and medium-sized accounting firms and some strategies are suggested.The fifth paragraph emphases the importance for maintaining self-disciplines by the accountants and states the need for preserving high quality human resources in industry.