The Development Strategy And Practice Solution Of Yongxin Accounting Company

With the approval of Shenzhen Finance Bureau, Shenzhen Yongxin Accounting co., LTD( hereinafter referred to as “Yongxin Company”), whose license was issued by Shenzhen Bureau of Finance,was founded in 2004 and acquired the business license of the enterprise legal entity,. It is an accounting mechanism that consists of accounting, finance, economic management professionals with synthetic service function. Its main services include providing customers from various circles with bookkeeping, auditing, capital verification, annual inspection, economic consulting, accounting consultant, finance & tax consultation, change of corporate shareholders, application for the general taxpayer and other professional services. Besides, Yongxin Company also offers training of accounting personnel as auxiliary business. The Customers of Yongxin Company are mainly from small and medium-sized enterprises and accounting practitioners. The company specializes in audit services related to financial industry, manufacturing industry and commercial industry. In recent years, it has provided professional services for thousands of enterprises and organizations, and now, the company is serving for more than 400 enterprises, which involved in machinery, electronics, construction materials, textile, education and many other industries.After the foundation of Yongxin Company, it was only two years when the company got a rapid development. Since 2006, the company has an average growth of over 30% annually. On the other hand, due to low entry threshold for bookkeeping, auditing and other business, as well as relatively easier entry barriers, which makes a steep rise of various full- time or part-time personnel engaged in this business, and as a result, it leads to vicious competition within the industry and constantly lowering of charge. All these conditions lead to perplexities for the development of Yongxin Company, whether the company should continue to grow bigger, or attempt to become stronger before its growing, or consider the both at the same time? It has become a urgent problem that the Yongxin Company managers need to set down appropriate development strategy.Based on actual condition of Yongxin Company, the dissertation first applies PEST Analytical Model and Michael Porter’s Five Forces Model to analyze external macro-environment of Yongxin Company and conduct industry analysis, then it uses financial quantitative techniques, through three interrelated parts: net profit ratio, total assets turnover and financial leverage which are decomposed by Du Pont Equation for return on equity to reveal the importance of strategic development for Yongxin Company. Thirdly, the dissertation applies SWOT Analytical Method to study feasible plan of strategic development of Yongxin Company. Finally, the dissertation combines the characteristics of the industry and Yongxin Company itself to expound concrete measures for strategic control from different aspects.Through the research of this dissertation, Yongxin Company can accurately position the development strategy and get rid of perplexity. In the meanwhile, the dissertation gives a summary to management method and management tools involved in actual operation of small-sized finance company. Therefore, this dissertation offers general reference value to the small-sized finance companies in respects of their management.