Hollis Tax Firm overview
His employees include his wife and his son. The small tax firm is dedicated to tax preparation and preparing legal documents which include immigration papers, helping clients open corporations but not limited to these documents. In doing so he provides value to his customers. Due to the tax firm being in New York, in addition to federal taxes, they also file NY State Income Taxes. Tax season is usually the second week of January until April 15th. It has now been in existence for four and half years. Table of Content Introduction……………………………………………………………………………. 3 Company Overview……………………………………………………………………4 Mission and Vision…………………………………………………………………. 5 Data Analysis of the company……………………………………. 4 SWOT Analysis of the company……………………………………………………. These strategies are considered to be unique as they are geared towards attracting small and medium sized firms.
The theoretical framework that the business will be built on is the Trusted Client Advisor Toolbox. Company overview For a company to operate and head in the right direction there is a need for a mission and vision statement. In most companies, the vision and the mission are the propelling engines of the company to success. Vision and missions vary from one company to the other depending on what they aim at accomplishing. Market Analysis In Hollis Tax operations, the company aims at achieving their set goals by clearly understanding the overall industry as well as the market. In this section, the company has a list of their competitors namely H&R, Liberty and Jackson Hewitt. So as to understand the directions in which one moves towards, it is important that they have in mind their competitors as well as their strengths and weaknesses.
This way, the company is able to analyze what their strengths are, their weaknesses, their opportunities given what their competitors are unable to provide to the clients and the threats that they might be facing. Also, knowing their competitors has helped them know that their mission it to get over 1000+ return clients so as to be slightly ahead of the 900+ tax returns that their competitors process thus increasing their income. However, due to the level of experience of the company, they are able to remain ahead of their competitors due to the long experience in the field. Experience is also a major factor that makes it possible for them to understand what may be needed by the clients in terms of service improvement as well as technological advancement.
With the rapid changes in technology, it means that every company, especially in the tax firms, should remain ahead in technology due to the easy and efficient tax compilation processes of their clientele. Some of the steps taken to ensure that the company remains ahead is use of websites, mobile phone applications and the social media which is by far the cheapest way of advertising businesses. With these marketing strategies, then the company is able to attract more clients. SWOT Analysis SWOT analysis is an important tool that makes it possible for a company to understand the performance. Hollis Taxes being a company that has more competitors and especially in the local market may have to understand both their external as well as their internal market.
This would help them understand what they need to do to improve their performance in the local market and also attract more clients to their unique services. Strengths One of the major strengths that the company has in the local market is usually the fact that they are able to evade costs such as employing skilled personnel. Inexpensive labor is among the greatest strengths that the company has hence being able to increase the profits and reduce spending. Adams is always willing to accept that a certain challenge is quite difficult for him so that he is able to look for an employee who is skilled and informed on issues of tax processing and other services that they offer such as processing immigration papers.
This also helps them operate all-round the year as he is always ready to help a client to satisfaction. Table 3: total asset turnover Hollis tax H&R BLOCK Liberty Total Assets Turnover 4. 88 Weaknesses Lack of clients is one of the hardest weaknesses that the firm is currently facing. This is contributed by the fact most of the clients who require tax firm services are looking for those tax firms that are close to them since it is less expensive for them. This is through the use of social media and other forms of adverts. This is possible since the kind of services that the tax firm is offering does not require necessary physical interaction. Another opportunity is through working with other businesses that offer similar services to help increase the number of clients and also reduce the challenge of geographical location that is limiting the firm from attaining more clients.
Since the company often has a period of the year when they have to prepare and process taxes, the company should be able to take advantage of the rest of the year to start a consistent as well as a profitable service in the company. This would help them to have constant flow of clients in the company thus maximizing revenue throughout the year. Zero interest expense. Statement of cash flow showed the business struggles in December until February with a negative ranging from $4,000 to $6,000 months over month. Relief comes in March with revenues coming in putting the firm back into the black. Largest expenses are payroll, rent and office supplies. 61% payroll, 16% rent and utilities, 10% office supplies. Bank products are used to increase revenue giving the customer the option to receive their refund by paying a fee.
Therefore, no imitate out of pocket experience is incurred. Client fee primary range from $100 to $399 where specialty returns range from $500 to $1,100 (see Table 4). Table 4 When it comes to economy changes, tax preparation is recession proof. However, the industry is effect by change in tax laws. A graph showing customer’s distribution in cities Conclusion As a local tax firm, there are a number of challenges that can only be solved by the economies of scale. This means that for a small business, there are challenges that make it quite hard for the company to grow to higher levels. One, by offering a single type of seasonal service to their clients, they may be unable to grow at faster rates due to the limited services at hand.
By increasing the services, and targeting larger markets, then the company may be in a position to improve their overall performance as well as attract other investors in the same venture. Recommendations With the services offered of filling tax returns, the company should always analyze the taxes of their clients after the peak season so that they are able to advice those who had to pay so much through the IRS. This makes the business unique as compared to the national level tax firms who are equipped with strategies to attract big business enterprises. The fact that the business will concentrate on small and medium enterprises is enough proof that the firm has the expected workforce to attract small firms that need to grow on the right side of the law (Winston, 1995).
The skilled personnel also make it possible for creation of new service opportunities that are meant to benefit the small and medium business owners. Ideally, small and medium size businesses are the largest contributors of the countries income through taxes as compared to the large businesses operating in the country. For this reason, if we are able to trap the small and medium businesses, then the firm is able to realize huge profits annually and also help in trapping income for the government. This way, they are able to market their services and even deliver them internationally. The internet creates a central position that links people all around the world in one place. When the right strategies are applied, the company is able to reach more clients internationally thus maximizing profits.
References Andersson, K. , Eberhartinger, E. ” The Motley Fool, The Motley Fool, 29 Dec. 2017, www. fool. com/taxes/2017/12/29/your-complete-guide-to-the-2018-tax-changes. aspx. New York: Haworth Press. Appendix List of Strategies in place Week 1 (July 8th – 14th ) Discovery Business environment analysis Reviewed tracking and managing organization strategy 1. Learning about the company and its History. A. What do you do? B. Customer needs ◦ Service (calls) ◦ Resolving customer problems B. Customer distance ◦ How far away are customer traveling form C. Type of customer (MIX) • Personal tax return, Partnerships, Corporation tax return D. Customer payment ◦ Price, checks, process, and Efile tax return ◦ How are payment and bank deposit handled? ◦ How is the information captured? Is there a daily report? E. Evaluate the customer relationship to the category Site analysis : A.
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