Business Plan of Audit Consultancy

Business Plan of Audit Consultancy

Business activity:

The aim of the proposed business will be provision of audit/consultancy services to sold traders,. Partnerships and limited liability companies by carrying out assignments in the area of audit, risk, and assurance services, stock verification assignment, consultancy for factoring decisions, business formations, acting as agent for capital and share fund raising, handling share issue matters, escorting corporate clients for national and international business forums, preparation of accounts for special insurance claims providing consultancy for short term and long term funding problems and providing client training /development such as/ for software training in auditing and accounting, Skill development in areas of accounting, IT, tax, audit.

Due to expansion of economy, particularly in Oman and Gulf the need to provide consultancy services has emerged/expanded to a greater extent. Eventhough great scope exist to be quality providers of professional services there are not enough personnel are available in the market. Therefore, this area of business, where consultancy and reporting as the end product was selected.

Having extensive experience prior to joining the Defence and resultant to the exposure in public sector I have made valuable and prospective contacts with leading and influential people of the region. A very minute proportion of my private financial assets are expected to be employed in the business. At present I am continuing as a senior executive in the public sector.

Market Share, Competition

Up to the commencement of the business, formally, I have carried out many assignments of audit nature on behalf of other existing consultancies. There are many business links that I have kept with audit clients, therefore, there are assignments on hand with certain small percentage of market share. Unlike a business which is going to commence without any market share, the proposed business has, (even though not sizeable yet) certain assignment on hand.

As professionals competition is to be handled professionally while respecting ethical aspects. Therefore, competition will not be affected by price cutting. But with the Arabic language base focused middle level businesses mainly, we will greatly be able to face with strength.

Projected Financial Results

Results Years

1 2 3 4 5

Sales Revenue 46000 53000 68000 69000 72000

GP margin 44.78% 51.33% 46.41% 46.31% 47.49%

NP margin -4.21% 8.04% 10.35% 13.34% 14.74%

ROE -43.41% 170.05% 104.95% 67.26% 46.32%

ROI -18.66% 33.79% 39.98% 37.10% 31.66%

Vision:

To help growth in the area of financial reporting, being a unique leader and guiding consultant in Islamic Financial Reporting system in the economies of Oman particularly and in gulf in general, and to asses to develop a main market own by locals.

Mission:

My mission is to provide customers with totally reliable information facilitating accurate data which require in terms of financial evidences for current and future decision making.

As an efficient financial service provider, to be the provider of a innovative reporting system relevant to specialties and uniqueness of the region.

To maximize the talent of each staff member to help them provide outstanding customer service through ongoing training and education while supplying an enjoyable work atmosphere.

I believe that, by treating our clients staff with honesty, integrity, commitment and respect, we will achieve the highest form of client satisfaction.

Market Size and Growth

Target customers:- the entire Oman/Gulf based Sole traders, partnerships, public and private limited liability companies, any individuals who will require consultancy services in specialty areas of Audit Services, Writing accounts, Consultancy /financial guiding and Client Training for reporting purpose.

Competitors:-

Name Strength Weakness

Ernst and young

* International Chain and long established.

* Powerful Technology.

* High reputation

* Poor Communication with average businessmen.

* Reporting styles and criteria are more western base.

* Lack of expertise of producing working papers and reports in Arabic.

Abu Gassallah Trading

* High reputation.

* Relative lower professional charges attractive and comfortable to middle level businesses.

* Arabic Language proficiency in accounting

* Poor Quality than Ernst and young.

* Less number of well trained qualified.

* Less automated auditing tools

My Strength and Weakness

Strength Weakness

* Powerful Technology.

* Arabic Language proficiency in accounting and greater understanding and closer communication with local/regional clients

* Reporting styles and criteria are supported by knowledge of culture/Arabic/Other ancillary needs.

* Lack of qualified accountants from Oman/region

* Bargaining by clients to reduce fees

* Still not reputed as same as big companies currently in the market.

Competitive Advantage

The current market is backed by more European professionals. The salary cost for them, in general is very high. Therefore, the billing done by current firms is with very high market rates.

Most of the companies