SIMPLIFIED

FEASIBILITY STUDY
OF AN ACCOUNTING
FIRM
 Feasibility Study
-an analysis of how successfully a project can be
completed, accounting for factors that affect it such
as economic, technological, legal and scheduling
factors. Project managers use feasibility studies to
determine potential positive and negative outcomes
of a project beforeinvestinga considerable amount
of time and money into it.

A good Feasibility Study helps to objectively decide

whether to proceed with a proposed project.

Components of
a Feasibility
Study
 I. Description

This study aims to assess how

successful/feasible, an accounting
firm will be. This small firm will be
managed by 3 partners.(General
Professional Partnership)
II. Marketing Aspect
a.)Product Description
This firm will be expected to provide services on:
* External Auditing-centers on critical examination of
financial statements by an independent CPA to express
an opinion regarding the fairness of the contents of the
financial statements.
* Tax Services- deals with accountants preparation of the
clients income tax returns, business and transfer taxes.
* Managerial Advisory Services- provides technical
assistance to the management. By providing industrial
advice regarding accounting,finance, budgeting,
business policies,product costs and other business
activities.
* Other Services such as Compilation Services
b.)Industry Profile
The face of accounting has changed. Its role in business,
particularly big business, is much more complex.
Accounting has now become a basis for corporate
behavior, decision-making, and ethics, and the skills
demanded of accountants are much broader as a result.

The reconstruction after the war, rapid growth of

business and economy, technological changes,
emergence of new developing economies, and expansion
of finance, commerce and industry across different
countries are some of the factors that created favorable
opportunities and demands for the introduction,
development and growth of the accounting industry.
The development of accounting firms providing tax
services,auditing services and management consulting
services in different countries are similar yet different
in various aspects. Thus, establishing an accounting firm
is of good choice for it is of great demand nowadays.
Note: Pls. refer to the photocopy for the
number of auditing firms
 General Trade Practices of an
Accounting Industry
1. Fees and Other Types of Remunerations:
a. Per Diem- per service rendered

b. Retainers Fee- a fixed fee for the continuity

of service

c. Per Hour- fixed fee for every hour of service

rendered

2.Marketing Strategies:
a. Social Media Marketing
b.Sales and Referral Letters
C.) Demand
Although theory suggests that companies would
rationally select into audit even if it were not a legal
requirement, many countries impose mandatory
audits. This is arguably due to an audit having
elements of a public good, which may result in not
enough audits being purchased without regulatory
intervention.
According to a study, privately held businesses
shares 65% of the total number of accounting clients.
The study also says that, A large percentage of
privately held companies are family businesses that
have a diverse array of needs and wants. There is no
question that these companies and their owners are
excellent clients willing to fairly pay for state-of-the-
art tax and advisory services.
d.)Supply/Competitors
Looking back at the list presented a while
ago, if we are to put up our business in the form
of an accounting firm here in CAR, there will be
few existing competitors(accredited accounting
FIRMS).
However, in terms of auditing
assistants,individual auditors, there are
countable consultants in CAR.
e.)Marketing Strategies/Plans
5 Ps of Marketing Mix
1. Product-what should be done to the product
so that it will be more attractive?
Answer: N/A
2. Promotion-what promotional activity should
be done in order to compete with the
promotions of others?
Answers: Mission and Statement Brand
Informal Marketing Opportunities
3.Pricing- what pricing method will increase the selling
value of the products?
Answer:As we are yet on the starting stage, the best
pricing method is the per diem basis.
4.Place/Channel of Distribution- This will describe how
one will reach his customers.
Answer: The proposed business is expected to be
established at Baguio City where most industries and
markets are located.
5.People- this refers to the salesmen who will be
selling and promoting the products. Do they know the
product?Are they committed to the company?
Answer: Considering the ways of marketing presented
above, the partners themselves will play a big role in
marketing through social media marketing and informal
marketing methods. For other ways of marketing, the
firm may hire undergraduate students which will help
them dessiminate pamphlets and flyers.
SOURCES/REFERENCES:
* Read more:Feasibility Study Definition |
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* http://www.projectmanagementdocs.com/pr
oject-initiation-templates/feasibility-
study.html#axzz4XNA3yB38
* http://www.slideshare.net/wualankcloy/feasib
ility-study-marketing-technical-and-manageme
nt-aspect
* https://www.wetfeet.com/articles/industry-ov
erview-accounting
* http://www.sec.gov.ph/wp-content/uploads/
2015/10/2017OGA_Firm_Grp_D_01.pdf