Research On Development Potential Evaluation Of Small And Medium-sized Accounting Firms

It is more than 30 years since CPA industry have been recovered in 1980. Within these years, the numbers and scale of accounting firms are expanding rapidly, many new services and service object are arising. Meanwhile, the regulatory standards have been improved evidently. The CPA industry is playing an active role and making a great contribution to the healthy development of economy. However, due to a late start compared with foreign countries and the foundation is relatively weaker, etc, most of the accounting firms are small and medium-sized. Compared with large domestic or international account firms, small and medium-sized accounting firms have their own advantages and disadvantages, facing fierce competition and holding huge development potential. How to lead small and medium-sized accounting firm play to the advantages and healthy development, to provide quality and efficient service for the vast number of small and medium enterprises, is an important topic for CPA and accounting profession.Arrangements of this paper are as follows: In chapter 1, the author introduces the background and meaning of the paper firstly; Then, the connotation of small and medium-sized accounting firms is defined,and theories are explained for further researches in chapter 2, including SWOT analysis, fuzzy comprehensive evaluation and Analytic hierarchy process and so on; In chapter 3, the author introduces the surviving environments of small and medium-sized accounting firms from strength, weaknesses, opportunities and threats; In chapter 4, the author establishes an index system which evaluates small and medium-sized accounting firm development potential. The key factors include: the external environment, resources strength, operational ability and qualities about corporation culture. Undersurface the four key factors are eight secondary indexes: macro-policy, market potential, client resources, human resources, earning power, operating capability, sense of worth and degree of recognition. For each index, the paper points out its meaning and design procedure; In chapter 5, the author constructs the fuzzy comprehensive evaluation model based on the analytic hierarchy process and fuzzy evaluation, and takes Guangcheng accounting firm as an example. Finally, the author puts out certain suggestions about development strategy for small and medium-sized accounting firms.