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OrTos Accounting Firm and Business Services COMP
OrTos Accounting Firm and Business Services COMP
Executive Summary
Accounting services are a necessity for the survival of a business and can even
save a ton of money by increasing business efficiency and allowing to make better
business registration, payroll, tax services, trainings, and workshops. The proposed
business of the researchers is an accounting firm which provides business services such
(SSS), Philippine Health (PhilHealth), and Home Development Mutual Fund (HDMF, or
Although the proposed business offers wide range of accounting and business
1
Brief Profile of the Entrepreneurs
This feasibility study came up through the collaborated efforts, ideas and capital of
the partners, namely: Elaine Organista, from Sual Pangasinan and Razzel Kaye Santos,
from San Fabian Pangasinan. The partners agreed to invest Php 70,000 each for the
opportunities does not only benefit the people but also the economy itself. Through the
An accounting firm provides services such as tax services, and also pays taxes to
the government. Taxation, in government sense, is the life blood doctrine of the
government. Taxes are collected to provide services to the people governed by the
state. In essence, the proposed business not only helps in lessening the unemployment
rate but also through taxes paid which is beneficial to the people.
The project came through the initiative of both proponents. With a finished business
course specifically a Bachelor's degree, this triggered the proponents to establish their
2
Rationale
Basic services of the proposed business are accounting, tax filing and planning,
does not reduce job opportunities for accounting graduates. Sectors such as
government, academe, private and public are the open fields that an accounting
The proposed business name is OrTos Accounting Firm and Business Services
from the last name of the both researchers. They come up with that business name
3
CHAPTER 2
MARKETING PLAN
establishing a business firm which will provide its target clients accounting
a common fund, with the intention of dividing the profit among themselves.
business. The proposed study could give them an opportunity to earn income
based on their efforts and based on the success and failure of the business.
and staffs. By outsourcing accounting services, the company can reduce costs
4
Description of the Services
Accounting services are a necessity for the survival of a business and can
even save you a ton of money by increasing business efficiency and allowing you
proposed business offers assistance to relieve them from worry relating to tax
directly. However, the proposed business shall only serve as a consultant and
OrTos Accounting Firm and Business Services would also provide payroll
solution from the computation of the employee salaries, bonuses, loans and
government deductions to the preparation of all the required poems and reports
5
Comparison of services with its Competitors
OrTos Accounting Firm and Business Services offers the same range of
services as to what its competitors provide. The difference lies with the quality of
The direct competitors of the proposed business are those firms who also
indirect competitors of the firm are those who offer auditing services since the
Although some may only understand the basic functions and activities of
6
Table 1
Ortos
Competitor Competitor Competitor Competitor
Services Accounting
A B C D
Firm
Bookkeeping High Quality Quality Quality Quality High Quality
assumed by the proponents that the competitors offer quality services. The
starting the proposed business, the proponents must have passed the
related fields.
Proponents choose the location because there are only four (4) direct
competitors.
7
Market Area
Nevertheless, the OrTos Accounting firm and Business Services will not limit its
accounting services to other town or cities, the proposed business will also
Main Customers
The main clients of the proposed business are business owners whether
Calasiao, Pangasinan. However, this does not limit the proponents to accept
8
Total Demand
Table 2
2013 999
2014 1042
2015 1139
2016 1180
2017 1341
Pangasinan. The data was collected by the proponents from the municipal office
were given a list of registered business establishments from the said office
9
Table 3
or 77% of the total sample population are willing to avail accounting services
while 74 business establishments or 23% are not willing to avail the said
accounting services.
presented below:
𝑝
𝑁=
1 + 𝑁𝑒 2
Where:
N = sample population
P = population
10
Table 4
221 29
Bookkeeping
Payroll 165 21
services they are willing to avail. In this table, there are 246 respondents who
chose more than one service. Out of the 246 respondents; 221 or 29% are willing
to avail the bookkeeping service, 165 or 21% are willing to avail the payroll
preparation service, 201 or 26% are willing to avail the taxation service, and 185
11
Table 5
HISTORICAL DEMAND
SERVICES
Year Payroll Taxation Business
Bookkeeping
Preparation services Consulting
Total
services and business consulting services from the years 2013-2017. The total
that were willing to avail accounting services and by the percentage of the
12
Figure 1
350
300
250
Bookkeeping
200
Payroll Prepartion
150 Taxation Services
Business Consulting
100
50
0
2013 2014 2015 2016 2017
taxation services and business consulting services. The historical demand data
graph shows the trend is constantly increasing. Arithmetic straight line method is
used to present the projections. From this projection, the average annual
increase is computed for the demand of the four services using the formula on
For bookkeeping:
= 299 – 223
5–1
= 76
4
= 19
13
For payroll preparation:
= 217 – 162
5–1
= 55
4
= 14
= 268 – 200
5–1
= 68
4
= 17
= 248 – 185
5–1
= 63
4
= 16
14
Table 6
SERVICES
Year Payroll Taxation Business
Bookkeeping
Preparation services Consulting
Total
15
Figure 2
600
500
400
Bookkeeping
100
0
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
services and business consulting) are plotted in the graph above. It can be
observed that the graph is in an increasing linear form which means that the
demand for these services increases for the next nine (9) year projection of
demand. It only means that the proponents would be gaining clients annually,
16
Table 7
HISTORICAL SUPPLY
SERVICES
Year Payroll Taxation Business
Bookkeeping Total
Preparation services Consulting
2013 185 135 173 161 654
2014 191 140 182 168 681
2015 201 146 189 175 711
2016 213 155 198 184 750
2017 219 163 205 192 779
services and business consulting services. The number of clients that the
competitors of the firm serve increase annually, however the increased is not
fixed. The data was retrieved by the researchers through interviews. It should be
17
Figure 3
250
200
150 Bookkeeping
Payroll Preparation
50
0
2013 2014 2015 2016 2017
taxation services and business consulting services for the years 2013-2017. The
historical supply data graph shows constant increase of supply for the four
services. Arithmetic straight line method is used to compute the average annual
increase of supply. Based on the projected method used, the average annual
For bookkeeping:
Average Annual Increase in Supply = 2017 supply – 2013 supply
No. of years – 1
= 219 – 185
5–1
= 34
4
= 9
18
For payroll preparation:
Average Annual Increase in Supply = 2017 supply – 2013 supply
No. of years – 1
= 163 – 135
5–1
= 28
4
= 7
No. of years – 1
= 205 – 173
5–1
= 32
4
= 8
For business consulting:
Average Annual Increase in Supply = 2017 supply – 2013 supply
No. of years – 1
= 192 – 161
5–1
= 31
4
= 8
19
Table 8
Projected Supply of Bookkeeping, Payroll, Taxation Services and
Business Consulting
SERVICES
Year Payroll Taxation Business
Bookkeeping Total
Preparation Services Consulting
2018 228 170 213 200 811
2019 237 177 221 208 843
2020 246 184 229 216 875
2021 255 191 237 224 907
2022 264+25 198+14 245+19 232+17 1014
2023 273+28 205+16 253+21 240+19 1055
2024 282+31 212+18 261+24 248+21 1097
2025 291+34 219+20 269+27 256+23 1139
2026 300+37 226+22 277+30 264+25 1181
2027 309+40 233+24 285+33 272+27 1223
services and business consulting services from 2018-2027. For the year 2022,
establish their business after four (4) years wherein there is a big possibility that
new competitors might exist. It was added to the projected supply of the services.
20
Figure 4
Projected Supply Data Graph
400
350
300
250
Bookkeeping
50
0
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
pattern. One of the reasons of the increase is that the competitors gain new
clients in their firm. This however, doesn’t mean that the proponents will not be
able to increase their number of clients annually. Based on the projected demand
can be estimated that the proponents will also have their increase in their number
of clients annually.
21
Demand and Supply Analysis
Table 9
Demand and Supply Analysis of Bookkeeping Service
Demand- Percentage
Year Demand Supply
Supply Gap Unsatisfied
2022 394 289 105 27
represents the difference that the supply does not meet. Percentage unsatisfied
those who were not able to outsource service. It can be observed that the
percentage unsatisfied for the first two (2) years of operations is constant and the
next three years (3) of operations is also constant. Factors that increase the
services from accounting firms. Factors that increase the supply is the new
22
Table 10
Demand and Supply Analysis of Bookkeeping Service with Market Share
Demand-
Year Demand Supply Market Share
Supply Gap
2022 394 289 105 19 18%
represents the difference that the supply does not meet. Refer to table 9,
reasonably estimating the market share they would gain from the percentage
unsatisfied. Market share represents the clients that the proponents would be
able to gain for the next five (5) years. It should be noted that the percentages of
the market share stated above is based on the reasonable estimate of the
quality. However, this does not guarantee that the proponents would gain
23
Table 11
Demand and Supply Analysis of Payroll Preparation
Demand- Percentage
Year Demand Supply
Supply Gap Unsatisfied
2022 287 212 75 26
represents the difference that the supply does not meet. Percentage unsatisfied
the portion of businesses that were not able to outsource service. It can be
observed that the percentage unsatisfied for the first year of operations is
increasingly constant and the next three years (3) of operations is the same.
24
Table 12
Demand and Supply Analysis of Payroll Preparation with Market Share
Demand-
Year Demand Supply Market Share
Supply Gap
2022 287 212 75 12 16%
represents the difference that the supply does not meet. Refer to table 11,
reasonably estimating the market share they would gain from the percentage
unsatisfied. Market share represents the clients that the proponents would be
able to gain for the next five (5) years. It should be noted that the percentages of
the market share stated above is based on the reasonable estimate of the
proponents.
25
Table 13
Demand and Supply Analysis of Taxation Service
Demand- Percentage
Year Demand Supply
Supply Gap Unsatisfied
2022 353 264 89 25
represents the difference that the supply does not meet. Percentage unsatisfied
the portion of businesses that were not able to outsource service. It can be
observed that the percentage unsatisfied for the first year of operations is
increasingly constant and the next two years (2) and the 4 th and 5th year of
26
Table 14
Demand and Supply Analysis of Taxation Service with Market Share
Demand-
Year Demand Supply Market Share
Supply Gap
2022 353 264 89 15 17%
represents the difference that the supply does not meet. Refer to table 13,
reasonably estimating the market share they would gain from the percentage
unsatisfied. Market share represents the clients that the proponents would be
able to gain for the next five (5) years. It should be noted that the percentages of
the market share stated above is based on the reasonable estimate of the
proponents.
27
Table 15
Demand and Supply Analysis of Business Consulting Service
Demand- Percentage
Year Demand Supply
Supply Gap Unsatisfied
2022 328 249 79 24
demand. It represents the difference that the supply does not meet. Percentage
represents the portion of businesses that were not able to outsource service. It
can be observed that the percentage unsatisfied for the first year of operations is
increasingly constant and the next two years (2) and the 4th and 5th year of
28
Table 16
Demand and Supply Analysis of Business Consulting Service with Market
Share
Demand-
Year Demand Supply Market Share
Supply Gap
2022 328 249 79 14 18%
represents the difference that the supply does not meet. Refer to table 13,
reasonably estimating the market share they would gain from the percentage
unsatisfied. Market share represents the clients that the proponents would be
able to gain for the next five (5) years. It should be noted that the percentages of
the market share stated above is based on the reasonable estimate of the
proponents.
29
Revenue Forecast
charged P300 monthly and quarterly tax services are charge at P1,000.
Proponents estimated that the business owners will only aim for once (1) a year
Costing Method
allocated at 15%. Tax services mainly consist of two (2) basic tax returns which
are monthly and quarterly tax returns. Monthly tax return has an allocation of
20% while quarterly tax return has an allocation of 15%. Consulting consist
mainly of the balanced scorecard which is the basic guide towards the
30
Table 17
BOOKKEEPING
Number of
Year Fee Frequency Total
Clients
2022 19 1,000 12 228,000
Table 17 shows the service revenue forecast for bookkeeping for the
years 2020 to 2024. Frequency represents the number of months in a year that
the clients will avail the service. The clients are billed at the fixed price of P1,000
31
Table 18
Number of
Year Fee Frequency Total
Clients
2022 12 500 12 72,000
service for the years 2020 to 2024. Frequency represents the number of months
in a year that the clients will avail the service. The clients are billed at the fixed
32
Table 19
MONTHLY TAX
Number of
Year Fee Frequency Total
Clients
2022 15 300 12 54,000
Table 19 shows the service revenue forecast for monthly tax for the years
2020 to 2024. Frequency represents the number of months in a year that the
clients will avail the service. The clients are billed at the fixed price of P300 per
year service fee. Monthly tax service includes the preparation of percentage tax
or value added tax. An addition of excise tax to either percentage tax or value
33
Table 20
QUARTERLY TAX
Number of
Year Fee Frequency Total
Clients
2022 15 1,000 4 60,000
Table 20 shows the service revenue forecast for quarterly tax for the years
2020 to 2024. Frequency represents the number of months in a year that the
clients will avail the service. The clients are billed at the fixed price of P1,000 per
34
Table 21
Number of
Year Fee Frequency Total
Clients
2022 14 3,000 1 42,000
service for the years 2020 to 2024. Frequency represents the number of months
in a year that the clients will avail the service. The clients are billed at the fixed
35
Promotional Measures
Accounting firms are not allowed to explicitly advertise the services they
render. They are only allowed up to a minimum size of tarpaulin to advertise the
services they render. Extravagant strategies in accounting firms are not allowed.
The proponents see that the use of calling cards, tarpaulin and creating a
Facebook page is fit as promotional measures. With this, the partners would be
able to indicate their names, business locations, contact numbers and the types
of services being rendered. The partners may distribute the calling cards to the
nearby towns. They would also be able make their business location easier to
find because of the tarpaulin used. And, since social media is a trend nowadays,
making an online page would make the prospect clients be more aware of the
business. Proponents however, may also gain clients through referrals from other
Table 22
Advertising Expense
Total P1,788
36
Table 22 shows the advertising expense of the proposed business. The
tarpaulin (4x5 ft.) costs P300. Each calling card on the other hand, costs P4.65
each, and total cards that will be distributed is 320 cards. The total cost is
Table 23
Ortos
Competitor Competitor Competitor Competitor
Accounting
A B C D
Firm
Customer
Excellent Excellent Quality Quality Excellent
Service
Organized
Excellent Quality Quality Excellent Quality
Office
Pressure
Quality Quality Quality Quality Quality
Handling
Table 23 shows the marketing strategy of the accounting firm which is not
37
Terms and Conditions
The proponents will only accept business owners who were duly
registered in their respected town and revenue district. Permits such as mayor’s
permit, barangay clearance, BIR permit, and other necessary permits in a certain
accounting firm and the rate shall depend upon the nature, timing and extent of
the work done by the accounting firm. Any necessary expenses incurred by the
accounting firm in bringing the files to the clients for purposes such as signing
and billing could also be added to the billing amount of the accounting firm.
However, it shall only be done during office hours. The firm is available from
Mondays to Fridays, 8;00 AM to 5:00 PM, excluding the lunch break at 12:00 NN
to 1:00 PM.
38
Chapter 3
Technical Feasibility
This chapter of the study deals with the analysis of the technical feasibility
feasibility of the business will depend on the availability of the resources to meet
supplies.
Trading Process
business so that it is for the accountant to perform its legal and tax management
that give business a reliable and accurate business information. The said record
is not only for the compliance to the law, it is essential for the business for it is
helpful for the decision making for the success of the business. The financial
record must be kept accurate and reliable for a period of 5 years at least, from
the date that the documents or record were obtained, prepared or completed,
A. Bookkeeping
Proponents shall prepare the financial statements of the clients. There are
five (5) basic financial statements for businesses which are the following:
39
statement of financial position, statement of comprehensive income, statement of
views the details the change in owners’ equity over an accounting period by
balance sheet accounts and income affect cash and cash equivalents and break
the analysis down to operating, investing and financing activities; and Notes to
B. Payroll Preparation
including the computation for their bonuses, incentives, Social Security System
40
C. Taxation Services
Proponents shall prepare the tax returns, which are mainly the monthly
and quarterly tax returns of the clients. Monthly tax return shall take form the type
amount equal to more than P1,919,500 shall pay VAT and if not shall pay
percentage tax. An addition of excise tax shall be paid monthly. Quarterly tax
returns mainly take form the income earned by the business which shall be
subjected to a tax rate. Taxes shall be paid to accredited banks of the Bureau of
Internal Revenue. Before payment, validation from the BIR District shall be
D. Consulting
owners. Mainly, the proponents can use the financial reports of the business
packages are tailored with regard to the nature, timing and extent of the services
to be provided. Also, the nature of the business that the client is engaged in such
as merchandising, manufacturing, and service can also affect the scope of the
partnership, and corporation may also affect the scope of the consultancy
services.
41
Fix Capital
The following are the needed equipment of OrTos Accounting firm and
Business Services;
Table 24
Operational Equipment
(In Pesos)
TOTAL P69,900
proposed business which amounted to P69,900. The amount consists to two (2)
computer sets; two electric fan; and two (2) printers. Equipments are availed by
42
Table 25
(In Pesos)
TOTAL P22,665
which amounted to P22,665, consisting of two (2) Computer tables; three (3)
tables; one (1) sofa; one (1) steel cabinet; four (4) wooden chairs; and two(2)
swivel chairs. Also this shall be purchased on a cash basis by the proponents.
43
Life of Fixed Capital
business. The equipment has an estimated useful life of five (5) years while the
Table 26
Depreciation Expense
(In Pesos)
OrTos Accounting Firm and Business Services. The equipment has an estimated
salvage value and depreciated trough straight line method. Salvage value was
44
Table 27
(In pesos)
Table 27 shows the office supplies of the proposed business in 1 year with
the corresponding quality and cost for a total of P2,285. Office supplies that are
45
Land and Building
Table 28
Rent Expense
MONTHLY ANNUALLY
TOTAL P96,000
constant for five (5) years of operation. The rent is paid annually with a monthly
payment of 8,000. The said location has 80 square meters at Bued, Calasiao,
Pangasinan.
Table 29
MONTHLY ANNUALLY
Table 29 shows the monthly and annual cost of maintenance and repair of
all the equipment to be used in the business, P500 and P6,000, respectively.
46
Source of Equipment
The equipment and furniture and fixture of the proposed business will be
November
Planned Capacity
The proponents conducted this feasibility and study for them to know their
capacity to operate the proposed business. And they found out that it is feasible
and therefore the proponents have the capacity to operate the proposed
business.
Future Capacity
competitive means more profits. That makes OrTos Accounting firm and
47
Office Overhead Expenses
Table 30
Operating Expenses
respectively. The amount paid in utilities includes the electricity usage of air-
conditioning unit, computers and printers; this also includes the water
the day to day operations of the firm. It is assumed by the proponents that the
operating expenses will increase by 1% annually. The expenses are paid in cash
when falls due. The proponents shall avoid delayed payments to avoid
48
Chapter 4
includes the form of business, the qualifications, duties and function of the
their basic salary, and the pre-operating activities to be undertaken before the
Form of Business
partnership with two partners namely, Elaine T. Organista and Razzel Kaye M.
Santos. Both, agree to carry on the business, contribute money, property and
industry to a common goal and the intent to divide profits among themselves,
absorb loses and be responsible for the debs of the business, if any.
Organizational Structure
knowledge of each partner are keys for making the business successful. The
operation manager and the other as a finance manager. Three (3) staff will be
49
Partner/ Operation Partner/ Cashier/
manager/ Supervisor Finance Manager
ore
Figure 5
Organizational Chart
manager, finance manager and the three (3) staff it shows the direct relationship
Qualifications:
Male or Female
50
Must be a flexible and with pleasing personality
Qualifications:
Male or Female
Functions:
51
Accountable for cash receipts and disbursement transactions of the
business
business
Staffs
Qualifications:
Employee Benefits
The employees will have their days-off during Saturdays and Sundays
Management Policies
management of the proposed business of quick and reliable decision of the top
52
Secure and maintain organized the accounting firm
Employees are only allowed to have three (3) absences every month
except for sick and vacation leaves. The management will have a “No work
no pay” policy. The employee salary will be based on the number of days they
have worked.
53
Pre- Operating Activities
Figure 6
Figure 6 shows the Pre- operating activities of OrTos Accounting Firm and
Business Services. On the 1st week of November, the securing of the location
and obtaining the lease contract will be undertaken, on the 2nd week of November
purchasing of the business equipments will be done and on the last week of
November the purchasing of office supplies will be completed. On the 1st and 2nd
54
week of December the training of the employee will be held. The start of the
operation will be on the 1st week of the month of January year 2022.
Table 31
Salary Expense
Table 31 shows the details of the salary of the employees per day that is
given by the proponents. The staff will receive P260 a day or P5200 a month with
an annual salary of P60,720. The annual salary of three (3) staff has a total of
In case of sick leaves, the employees shall file sick leave after (3) days on
the day of absence as not to deduct the daily salary from their monthly salary.
55
Pre-Operating Expenses
Table 32
Mobility Expenses
Activities Amount
Transportation P700
Communication 100
Transportation 1000
Total 1,900
proposed business and has a total of P1,900, it includes the business registration
process; hiring & training of employees; and purchase of equipment, furniture &
fixtures and office supplies. These shall be presented on the first year statement
projected financial statement since these are incurred before the start of the
business.
56
Table 33
Administrative Expenses
Total P3,000
amounting to 10,000. These are expenses that are necessary before the
expenses are paid in cash. Also, these expanses shall be presented annually
since renewal of permits and licenses are required annually by the government.
57
CHAPTER 5
FINANCIAL PLAN
This chapter presents the financial statements of the business from 2022
business within the next five (5) year projection of the financial statements.
Table 34
Equipment 69,900
Total P140,000
P140,000 which shall cover the expenses before the start of operations,
amount of initial investment less the pre-operating expense, furniture and fixture,
and equipment. The initial investment of each partner shall be P70,000 each.
58
Major Assumptions
explained, salvage value will be deducted from the purchase price. The
e. Salary of the staffs will increase by 2% after three (3) years of operation
g. The business will have pay percentage tax which is 3% of the gross
i. Partners will not receive salary but are assumed to have an annual
59
60