Development And Strategic Analysis Of Small And Medium Size Hong Kong CPA Firms In Hong Kong And Mainland

In these few years, Hong Kong is encountering an economic downturn. At the same time, China entered into WTO. Hong Kong accountancy profession is at such a critical challenging edge that running their business becomes harder and harder. It is especially true for small and medium size local CPA firms that also have to face keen competition from international CPA firms and resources shortage problems. The thesis targets at small and medium size Hong Kong CPA firms, searches for strategies to override other competitors and the changing environment. The research information is based on primary and secondary data gathered from replies of questionnaires and other sources. Replies of questionnaires reflected that the business results of the majority small and medium size Hong Kong CPA firms are not as good as before - no increment both in number of staff and business turnover. Scope of services provided are still typical types, i.e. audit, taxation, book-keeping and company secretarial services, etc. More than 40% of the replies claimed that they would benefit after China entered into WTO. Around 30% of the replies showed interest in expanding their business to China. The factors they will consider included relationship with mainland clients and others, understanding of China cultures and policies and availability of capital, etc. The strategies they will consider in improving their business results are merging with other CPA firms, expanding scope of services, cutting down number of staff, lowering down salary level, reducing services fee and developing their business in China market, etc.