Study On The Survival And Development Problems In Tianjin Tiansuo Accounting Firm

In recent years, with China’s rapid economic development, the need of professional service has been grown quickly for enterprise, especially small and medium-sized enterprises. The survival and development of small accounting firms has attracted the attention of the government, and a series of policies and measures has been published by the government to encourage the development of small accounting firms. But, at present, the survival and development of small accounting firms has been increasingly difficult.Tianjin Tiansuo Certified Public Accountants was founded in2010, is located in Shuangfa spring garden, Jingjin Highway, Beichen District in Tianjin.Tiansuo currently has auditing business and capital business qualifications, which approved by Tianjin Municipal Bureau of Finance and the Institute of Certified Public Accountants, mainly provide services for the small and medium enterprises in Tianjin, It has6employees, including5certified public accountants. The number of bachelor degree or above is3, accounting for50%in the total number. The number of over60years of age staff is1, the number of aged40-60is2. In the early of the establishment mainly rely on small enterprise audit to earn income, with the firm’s development, gradually increase the capital verification, auditing for the special item, management consulting business. In2011the net profit is about400000yuan. The net profit of2012is expected growing to700000yuan. Although the net profit is increasing, but the problem of survival and development has been plagued by Tiansuo.The survival problems of Tiansuo is mainly caused by fierce market competition and the narrow scope of practice, the development problems is mainly due to the unreasonable talent structure, imperfect internal governance structure, difficulties in the development of the non-audit business. Small firms are often at a disadvantage in the fierce competitive environment, coupled with limits of the practice range, and competing with not large and medium-sized firms. Among the current employees, most of them can only engaged in auditing and verification business, but they are not familiar with tax planning, investment and financing business, and unable to carry out the non-audit business. In order to facilitate the management and improve efficiency, Tiansuo adopts flat management mode, giving rise to the imperfect of the firm quality control system, weakening the ability of fims to control operational risk, also cannot forming a dynamic employing mechanism and scientific assessment system to retain talents, making the increasingly difficult development of Tiansuo.The main purpose of this thesis, based on in-depth investigation and analysis of the current situation of Tiansuo, is identifying the accurate market position, formatting the "differentiation advantage", taking the road of sustainable development. This paper uses the literature research method, case analysis method, system analysis method and SWOT analysis method, analyzing the advantages, disadvantages, opportunities, challenges of small accounting firm development, combining the firm development strategy and internal resources and external environment. Through the analysis of the competition strategy, in order to increasing the market share, the only road for Tiansuo is reducing the cost, adopting centralized strategy, and taking the difference road. We have to integrate marketing theory in the development of Tiansuo, and apply the marketing strategy to the accounting firm, taking the market as the center, taking the customer demand as the guidance, taking the marketing means, so as to working out correct development strategy.The innovation point of this thesis study is, first of all, through the use of SWOT analysis and differentiation analysis, combined with the domestic and foreign research and work experience in Tiansuo, in accordance with the "based on the scientific development, focus on independent innovation, improve the system mechanisms, and promote social harmony" spirit, discussing the existing problem in the survival and development of small and medium-sized accounting firms and problem solving methods, give full play to the role of small firms in the process of the construction of well-off society. Secondly, I integrate the multi-channel strategy and differentiation strategy into Tiansuo’s development. Multi-channel strategy refers to that small firms not only localize in the audit service market, also should be based on their own advantage to expand its scope of business, at the same time, in order to seek more long-term development, firms should through mergers and cooperation, strengthen communication with other affairs. Differentiation strategy is refers to that, the enterprise, according to the market demand, should focused on a field based on their resources and ability, to seek the development of the enterprise. An enterprise, from the preparation to the end of the entire life cycle, can be roughly divided into three phases: the establishment, development stage and the end stage. In different stages, and even the same stage, their needs are diverse, therefore, to avoid excessive competition, as a small accounting firm, can open up new business in one or several field. The idea is that, Tiansuo can through the way of merger or cooperation, expanding the tax planning and the other non-audit business, segmenting service market, implementing brand strategy, building the non-audit business team, forming their own core competition.