To provide professional accounting consulting services for small to midsize business at a lower cost than big accounting firms.
Current Marketing Situation
• Segmented by positioning:
I segmented the accounting industry in 4 categories: corporate accounting, government accounting, public accounting, and independent accounting
1) Public accounting provides services including auditing, tax consulting, and merger and acquisition advices. (Main services provided by Big Four on wetfeet.com) The main business in public accounting is auditing. Most people working in this field get certification as a CPA. Tax consultants help clients maximize their company’s profit by manipulating the income statement to deduct tax. Other consultants may help companies to evaluate employee compensation, benefits and manage their assets. What auditors do is “audit financial information and prepare statements for investors or officials to show that their financial activities have been properly conducted and reported.” (careeroverview.com) The Big Four, Deloitte Touche Tohmatsu, Ernst & Young, KPMG and PricewaterhouseCoopers, have business sections such as assurance, taxation, and advisory. The Big Four have led the industry as they create an oligopoly in public accounting field. So in public accounting, there are these three main sub-segments. (wikipedia.com)
2) Corporate accounting is also called in-house accounting. Every company has accountants setting budgets, managing accounts and assets, tracking payroll, and other financial matters. In-house accountants are also responsible for managing company's accounts payable and accounts receivable. These accountants also conduct internal auditing for the company. Accountants in a firm are critical to management’s decision making process. They set budgets and prepare financial statements for managers.
3) Government accounting focuses on the flow of financial resources rather than economic resources on which public and corporate accounting mainly focuses. They also do budgeting, auditing, and tracking costs and revenues. (wikipedia.com/governmentaccounting) According to job description that Bureau of Labor Statistics gives, “Government accountants and auditors work in the public sector, maintaining and examining the records of government agencies and auditing private businesses and individuals whose activities are subject to government regulations or taxation. Accountants employed by Federal, State, and local governments ensure that revenues are received and expenditures are made in accordance with laws and regulations.” (Bureau of Labor Statistics, Accountants and Auditors)
4) Individual accounting is always in the form of partnership. Just like what big accounting firms are doing, individual accountants help prepare tax returns for small companies, and also advice small businesses. People in individual accounting usually are CPAs, and have experiences working in big accounting firms, knowing how the industry runs. This is what I really want to do as it is stated in my mission statement.
Segmented by the size of accounting firms
In accounting industry, the size of the firm determines its customers, service mix, office location, and annual income.
1) International accounting firms. The Big Four are the most famous and largest accounting firms worldwide. Mentioned above, the Big Four are Deloitte Touche Tohmatsu, Ernst & Young, KPMG and PricewaterhouseCoopers. They all have over 135,000 employees, 100 offices, and $22 billion revenues for the fiscal year of 2009. ( Big Four Reports 2009 ) According to the industry overview on hoovers.com, the whole industry generates about...