Study On Development Strategy Of SH Accounting Firm

The Chinese reform and opening up to the world which took place more than three decades ago, the certificated accountant industry in China has got the golden opportunity for development. However, due to the uncertainty in the global economy and the fast development of the network technology, the accountant firms got big challenges in the organizational structure, service content and items provided etc. To survive and develop in the new environment, accountant firm needs to make big improvement in the internal management mechanism, network technology application and professional training, and then improves the quality of the customer service and expand the service scope. At present, the global economy keeps downturn and the supervision for the professional norms from the government becomes more and more precise. The operational cost of the accountant firms has been rapidly escalating on account of increased litigation risks and premium rates, soaring human resources cost and updated auditing technology. Furthermore, the global top accountant market is in the monopoly of ’Top4", which pushes the domestic accountant firms to face the fierce competition in the Chinese account market. Consequently, we need to review and explore the operation method of the accountant industry.This article is based on the theory of competition in the industry structure and the SWOT analysis model. It has analyzed and compared the domestic accountant firms with international accountant firms in the history and strategy, summarized the current situation and problems of large-scale domestic accountant firms’in stagey and operation. The author did case-study on the SH accounting firm macroeconomic environment, industry environment, as well as the internal status, and then provided suggestion on the formulation and implementation of the development strategy of the SH. This paper argues that the bottleneck for SH CPA’s development is both challenge and opportunity.In the author’s opinion, the strategy of SH should focuses on bigger and stronger business size and profit, promoting international development. For this strategy, SH firm should focus on quality control, HR, professional technology innovation and customer service. In order to achieve these purposes, SH should set4key steps. First, improving and perfecting risk control and quality control system; second, optimizing human capital structure; third, researching and studying high-end accounting market service technology; establishing information system including executive decision making, middle lever management control and basic level operation integration; the last, reaching large-scale operation by merging and restructuring for resisting horizontal competition, participating international competition.The author expects SH accounting firm to grow up and become China’s famous accounting firm. The research can also be used as reference for other firms.