SWOT Analysis for Pewter’s Accounting Services
A SWOT analysis is a necessary systematic tool used to evaluate both external and internal factors, which have influence over business decisions and adjustments to their market. Applying the SWOT to Pewter’s Accounting Services will help identify economic, legal, regulatory forces that affect business. This analysis will not only allow the business to identify strength but weaknesses in its industry. Understanding the weaknesses of the industry will also allow to strategies for different opportunities. By identifying threats and trends we can make bold predictions to take advantage of opportunities and changes before they come to fruition. We will be identifying seven different forces and trends that affect business.
Economic trends play a major role in all businesses. This is a major factor that an accounting services business will have to force to make predictions and adjustments. Based on trends the company may anticipate hiring more or less employees. A positive strength for Pewter’s Accounting Services is that regardless of a good or bad economic year individuals still have to file state and federal taxes.
Business will still ay quarterly taxes and need help with bookkeeping as well as the annual filing of taxes for the state and federal government as well. Threats of a poor economy can tend to not impact this industry too much because it is a constant need. An opportunity for this business lies during an economic upswing new businesses are being created meaning the need for accounting services will be used frequently. Being able to offer year round services will help fight the idea of seasonal work that tax prepares and consultants have to compete with.
Legal and Regulatory
In order to be a reputable company the Pewter’s Accounting Services should be quipped with Certified Public Accountants. A CPA is an individual who has taken the time to take a series of four rigorous exams that have to be completed in an 18- month period (CPA Review, 2013). Accountants can don’t have to be Spa’s but there is an extra allure and makes your information reputable compared to the latter. Accountants are required to take 20 hours of continued education, which is also referred to as CE credits this allows them to stay updated on new laws and regulations for the upcoming year (CPA Review, 2013).
Despite the requirement this is not enough time for an individual to gather and retain much of the information. A lot of time and hours with the organization will need to be dedicated to ensure that all individuals aiding in filing taxes is up to date.
Supply Chain and Technology
Pewter’s Accounting Services will have to take advantage of new technology available to a mass market. This external factor can be seen as both a strength and weakness. There is one major factor that gains an accounting services business.
During tax By dwarfed referrals and networking efforts throughout the year. During this time the company can impress new clients and existing clients by providing the newest or most efficient counting software to help the customers file their taxes electronically. The accounting services will also provide its customers access remotely via a secured online site providing the clients access to their financial information from anywhere in the world. This can provide issues of security because we are dealing with sensitive information that can be used in a malicious fashion if intercepted.
Adjusting to Change and Competitive analysis
Pewter’s Accounting Services will have its headquarters in the San Fernando Valley. A quick yelp search of accountants near the North Hollywood area provides a list of 109 efferent companies that offer accounting services (Yelp, 2014). The last census of North Hollywood estimated that there was over 160 thousand residence, which has only grown in the last 10 years. Despite a large number of competition in the area there are plenty of clients to go around especially when there are new adults entering the workforce every year. Working on referrals will be our strength.
Individuals and business owner tend to refer a good CPA when possible. Seasonal business can be lost to conglomerates like H & R Block who specialize in short form tax solutions at high prices. They, however, have big advertisement dollars that will need us to think outside the box to get business. They prepare taxes for 1 in every 7 filed returns in the United States (H & R Block, 2013). This leads to staying competitive not necessarily with H & R Block but with other single owner or partnership offices and that is by having our tax prepares go through the training provided by H & R Block.
This will give us up to date technicians and trends with the industry while also allowing us to make modifications to our own strategies. Strategy Internal factors will include a structured strategy for the company. The strength of strategy will be more control of day-to-day operations. The beginning phase will be consist of building a clientele base by Joining the Los Angels Latino Chamber of Commerce along with other organizations in the area. This will help build the reputation for the firm. Keeping the staff small will be a must to keep overhead low.
Location will not be cheap but will be a necessary evil when trying to attract walk in business. Pricing will be key as well. The company cannot price too low or too high. The companies’ long-term plan is to also higher licensed representatives that can give financial advice as well. This phase of the strategy will help earn more trust in the community as well as build market share by reinvesting customers tax returns and also offering tax right off by setting up individual retirement accounts.
Processes & systems
In order to retain and increase the customer base follow up process need to be in place.
Email’s, Addresses, and phone number records need to be maintained and scrubbed before outbound calls are made according to the telephone consumer protection act if we are making sales calls (FCC, 2014). Most of our outbound calls will are that will be adopted by the company to standout from other companies. Our systems will also have reminders and will also send out emails periodically to give our customers industry updates. The systems for internal control will all need password verifications to view customer data.
Accessing of this data will ensure that we can keep customer information safe to help fight identity theft.
Accounting is a very stable form of earning a living. The goal for Pewter’s Accounting Service is to become a leader in the community. Surviving the first couple of years will not be easy, but consistency pays off in the end. Visibility will be important as individuals flock towards others that make a difference and are accessible. Despite the treat of losing customers it is inevitable to suffer attrition, but staying ahead of market trends will be required to avoid huge dips in production.
Branching out to being more than Just a seasonal service will also be key. Hiring Spa’s and accountants that can assist with other daily activities like payroll, bookkeeping, and advising will help bring in income year round.
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The SWOT analysis assisted in identifying key objectives and obstacles that a new business can face, but over come. The art of planning cannot be understated as we deiced there is internal and external factors that impact business. Perception of the world around the business is a key component of this analysis.
Understanding economic factors, legal and regulations can help avoid unnecessary problems and will also assist in making adjustments. Keeping up with competition and knowing your demographics can help you target your audience. Updated software and internal processes can insure long-term success because service is everything. Finally, setting goals and expectations will always guide a leader to lead his employees strive to achieve organizational goals.
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How to become a CPA. Retrieved from http://www. Capable. Com/how-to- become-a-CPA/#. UMP_Fixed FCC. (2014).
Telephone Consumer Protection Act of 1991. Retrieved from http://www. FCC. Gob/document/telephone-consumer-protection- act-1991 H & R Block. (2013).
H & R Block Newsroom. Retrieved from http:// newsroom. Warlock. Com/about/ Yelp. (2014, May).
Accountants near north Hollywood. Retrieved from http://www. Yelp. Com/search? CFML=accountants=North art=100