Research On The Expansion Of Non-audit Services Of Small And Medium-sized Accounting Firms

Accounting firms play an even significant role in the change and development of China market circumstance and economic system.It also gets more and more attention from all walks of life.For the moment,small and medium-sized enterprises are in the stage of rapid development,which brings great prospect for accounting firms.In the meantime,the number of accounting firms is growing year by year and increases the competitions in the industry.Small and medium-sized accounting firms are unable to compete with large or Sino-foreign joint venture accounting firms regardless of human resources or financial resources.In the long term,the audit market is becoming saturated,so it is difficult for them to continuously maintain their survival by providing audit service to enterprises.Therefore,it must change its business model and speed up expansion of non-audit service.This thesis combines,analyses the relevant theories at home and abroad and sorts out correlative examples,thereby puts forward a new idea for the diversified development of accounting firms and the expansion of non-audit service.Based on the theory of strategic management,fundamental resource and competitive edge,this paper expounds the current situation of small and medium-sized accounting firms in China.Combined with actual situation of H accounting frim,it points out the predicament in recent operation and also use SWOT analysis to identify the key and importance of expanding non-audit business in H.According to the firm's features,it formulates the methods of opening new service areas from three different business directions: tax,consulting and accounting.Finally,it proposes safety measures to H accounting firm about the non-audit business.The main dilemma faced by H has certain universality among the small and medium-sized accounting firms in China.Via the case study,the article hopes that it can be used for reference to other similar accounting firms which encounter the same difficulties and obstacles during operation and development.