Money and taxes are the essence of any financial or business operations. Thus, various tax reducing strategies have been developed but even though many proved to be successful, accounting processes are still rife with confusion with accountants and bookkeepers trying one thing after another to keep the business finances under wraps and money going out and coming in, well and properly accounted for.
Plus the fact that there have been many sample reports of abusive tax shelters in the news thus leaders of large corporations have become exceptionally wary of any other possible alternatives to save money in taxes, be ahead of the competition and save the business when worse comes to worse.
Add that to technological advancements paving the way for the economy to become immensely international that the expansion of the economic market is somehow making both tax planning and accounting strategies for business owners and investors quite harder than it already is. The process to account for every gain, return, and expense is becoming more and more complex to understand and harder to update financial records and secure it.
There is constant demand for competitiveness and with that comes the need for companies to perform better in every area of business, although most of the time, that’s easier said than done what with all the challenges involved in trying to appease, please, and satisfy current and future stakeholders. And this is no truer for accounting firms with corporations wanting to engage in international commerce, and every other small and medium business owners being at the mercy of a changing business environment. Being left far below the industry ranks is simply not an option. You can also read professional SWOT analysis.
With that said, it is crucial today more than ever for companies with finances at the core of their operations, to understand their current position, ergo where they are and where they’e supposed to be, as well as the steps they need to take to ultimately reach it. Anything else would be a sign of neglect and irresponsibility, because companies who are able to stay on top of their game try to regularly analyze their position through conducting a SWOT so that they can identify their strengths, determine their weaknesses to check where they need to step up, protect their opportunities, and eliminate threats. You may also see sample business SWOT analysis.
The SWOT analysis takes internal and external issues as something individual to each company. Financial or not, each company have their own way of doing business. Then again, bookkeeping, accounting firms and tax companies should evaluate trade-specific factors to get an effective analysis of the industry as a whole. Conducting a SWOT analysis as part of the business plan would be a great place to start.
SWOT is an abbreviation of Strength, Weaknesses, Opportunities and Threats, making up a framework of analysis used for evaluating your accounting business’ competitive status or lack thereof. It is often used as a business strategy or tool which identifies four important areas of business: strength, weaknesses, opportunities and threats with the end goal of finding out the company’s strengths, where its weakest links are, what potential opportunities can be used and external threats.
By using environmental data to assess the firm’s current status, SWOT analysis helps company leaders determine which factors, financial or otherwise, holds the company in fulfilling its objectives and the types of challenges it must face or need to reduce to gain positive results. SWOT analysis also supports the company’s current business position and its anticipated position or the status that the organization wants to reach. You may also see business SWOT analysis.
Your team—the people you hire to perform accounting or bookkeeping tasks in your business—can be considered a strength especially if they really make a strong team of skilled, high-performing professionals with certain qualifications such as Certified Public Accountants or CPAs, and also those who gained enough training and experience in accounting and taxes. You may also see SWOT analysis in PDF.
Another area that you can count as strength in a tax or financial business is the fact that compared to other businesses in other industries, you don’t have to spend as much in overhead and operating expenses which would earn you a higher profit margin. If you choose to, the business can be transformed into something completely home-based and wouldn’t necessarily require you to keep paying rent, mortgage or lease costs, now would it warrant the kind of manufacturing expenses otherwise necessary in most organizations or companies.
Using a tax application software such as Intuit’s QuickBooks, when used properly, also counts as part of your strengths, especially if it’s the type that’s regularly updated and incorporated with your bookkeeping tasks which is a leverage that the competitors may not have. You may also see HR SWOT analysis.
One significant weakness when you own or manage an accounting business or if your company profits on tax preparations is the job’s very seasonal nature. This industry demands long hours of tax time but year-round work is hard to come by, making it extremely difficult for your company to retain skilled and qualified employees or attract the right people to work for you on short notice when ‘tis the season for filing taxes. The same is the case with bookkeeping and accounting firms, although it is often to a lesser extent, where there’s more workload during the close of the fiscal year than the rest of the year. You may also see sample free SWOT analysis.
Generally, businesses dealing with anything that has to do with money have the opportunity to combine their functions so that they can maximize their operations and offer business opportunities for the duration of the year and onwards. The development and selling of bookkeeping applications and tax software would also contribute and keep a good flow of income for the business when it’s off-season. You may also like hotel SWOT analysis templates.
This makes it important to review recruitment strategies giving room for more opportunities to make growth and expansion possible. For example, a small tax or accounting business have the ability to build a network with other startup companies and firms so that they can also eventually build a market for the services your business provides.
There are a number of external threats affecting a business and can be identified in a personal SWOT analysis. There are also a lot of user-friendly web-based programs that would make the process easier for the user where there would no longer be a need for the majority to seek out specialized accounting services, especially in the filing of taxes. Additionally, larger corporations and the industry big boys present a greater threat in competition, offering perks that the smaller businesses can never match such as getting refunds in advance.
Plus the threat of brand recognition. People are generally pretty uptight when it comes to their financial information and failing to recognize a name of a company or have their brand associated with a popular and reputable provider known to safeguard customer information means losing the customer to the competition thereby losing potential business. You can also read SWOT analysis in word.
Obviously, your analysis would include a list and a graph breaking down what you ultimately want to gain, to your stakeholders, partners and everyone who are supposed to benefit from it. Having a list of everything in bullet point format would be much easier for both you and the audience. There would be no need for being wordy and losing your reader in a maze of lengthy sentences. You may also see competitor SWOT analysis templates.
Again, having lengthy sentences wouldn’t be necessary. In fact, your bullet points should be short, with a few words for explaining the four quadrants and if it still looks complex, simplify your points as needed. Assuming that you have now a list good enough for pointing out your firm’s strengths, weaknesses, opportunities, and threats, you then move on to refining the details you have collected. Double check for redundancy, curate your points when necessary and eliminate any information that doesn’t need to be there anymore. You can also like SWOT analysis samples.
Review each section and write down information from the most important down to the least important one. The most crucial points should be found on top of each section with the rest being ranked accordingly. You may also see hospital SWOT analysis.
There is more to owning a business that banks on its ability to keep record, analyze and secure financial information or take charge of dealing with people’s and other business’ finances from safeguarding their information, taking note of transactions and the effective filing of taxes than just raking in hard cash for the services you provide. You may also see detailed SWOT analysis.
You have to take a step back, not once in a while but regularly, and analyze where your business stands versus where it should be standing. Otherwise, you’re just really another firm among the thousands in the industry and the next client would have no reason to consider doing business with you when the office down the road is far more attractive. You may also see personal SWOT analysis templates.