The Feasibility of Establishing A Tax and Accounting Firm in Digos City
The Feasibility of Establishing A Tax and Accounting Firm in Digos City
The Feasibility of Establishing A Tax and Accounting Firm in Digos City
INTRODUCTION
Accounting firms are viewed as a firm of accountants that serve clients such as
Common services offered in accounting firms are tax planning and preparation, operational
bookkeeping and payroll, auditing and business development and evaluation (Leonard, 2018).
According to an industry market research report made by IBIS World in December 2018,
the revenue for the global accounting services industry is expected to increase at an annualized
rate of 3.5% over the five years to 2018 to total $507.2 billion, including a 0.4% increase in 2018
alone. Firms in this industry commonly provide a variety of services, such as the preparation of
financial statements, the development of budgets and the review of auditing records for small,
At present, the largest accounting and auditing firms are coined as “Big Four”. This
includes PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst and & Young, and KPMG.
Combined they perform more than 80% of the public company audits in the United States and
gross more than $100 billion dollars in revenues annually (Averkamp, Harold).
In the Philippines, Mark Ferrolino stated that SyCip Gorres & Velayo (SGV) is the
largest professional services firm in the country. With eight offices across the country, it employs
over 6,000 professionals from various disciplines that deliver value-added services to its clients.
SGV, the Philippine member of Ernst and Young audited the financial statements of 513
companies that made it to the latest top 1000 corporations ranking, adding 74 more than in 2015
and increasing its market share to 51.3% from 43.9% in the previous year. Meanwhile, Isla
Lipana and Co. (ILC), the Philippine member of Pricewater house Coopers (PWC) landed on the
second spot with 152 clients, adding 12 more firms from the previous edition’s 140.
Consequently, its market share increased 15.2% from 14% previously. R.G. Manabat and Co.
(RGM), a member of Klynveld Peat Marwick Goerdeler (KPMG) International, followed with
98 firms or 9.8% market share, down from the last edition’s 118. Punongbayan and Araullo, a
member of Grant Thornton International, maintained its fourth spot as 45 of its clients landed on
the top 1000 list, lower by four companies from the previous year. Completing the top five
auditing firms was Reyes Tacandong and Co., a member of RSM Network which is administered
by RSM International Ltd., with a 2.3% market share, or 23 client firms which made it to the list.
However, this was lower than the 30 firms in the previous edition (Christine Castañeda, 2018).
In Mindanao, specifically in Davao, firms including Santos-Cua AAC, Tax Base and
Davao Accountants also offer cost-effective accounting and bookkeeping services, audited and
assurance services, internal audit and risk advising services, tax advisory and compliance
entrepreneurs, and startups in all their accounting needs. The firm provides services to at least
500 client services in the country. Moreover, Reyes Tacandong and Co. is a member of the RSM
Network, which is an independent accounting and advisory firm which practices in its own right.
The said firms were granted accreditations to meet the demands in raising the bar excellence in
establishing an accounting firm which specializes in three areas, accounting, taxation and
consultancy. The said firm will be located at Digos City, Davao del Sur and it is also open for