Proponents : Cabanlit, Ephraim

Cagulada, Feranie Jane

Careras, Karen Jeanette

Casia, Kristinne Jeanne

Malalis, Rizalyn

Title : PETS ANALYSIS: Ochoco Law Office

COMPANY PROFILE

Ochoco Law Office started as a full service accounting and taxation firm in
Tagbilaran City in 2009 by Atty. Neil Eric E. Ochoco, CPA. As an accounting and
taxation firm, it focuses on outsourced accounting, tax compliance services, internal
audit, external audit, setting up of internal control systems, , setting up of computerized
accounting system, and other accounting-related services.

In 2015, it started to offer complete Legal and Tax Consultancy services in the
City of Tagbilaran and Province of Bohol. At present, the firm has affiliate offices in
Dumaguete City and Dipolog City. The practitioners of the firm are experienced in their
various fields and industries.

The firm is composed of lawyers, certified public accountants, and tax

practitioners. The firm is geared towards growth and expansion to provide quality
services in the Province of Bohol and its neighboring provinces. The firm, together with
its affiliate offices, now has more than twenty (20) associates and staff in its various
practice areas. Its practitioners are constantly updated by participating in workshops
and training both in the local and national level.

At present, the firm now offers tax compliance, tax litigation, tax planning and
consultancy, corporate business formation, corporate reorganization and structuring,
corporate litigation, and corporate legal advisory and transactional law.

The firm’s core of its legal and consultancy practice is providing quality services
without compromising its integrity. The firm is committed to provide full satisfaction to its
clientele.
PETS ANALYSIS

POLITICAL-LEGAL FORCE

Amendment of tax policy

A change on tax policy has a great impact in taxation and accounting firm since
business owners seek consultancy services regarding on the application of the up to
date tax laws intervened by the government. The TRAIN Law brings opportunity to the
firm since advisory/consulting services regarding the law will be of demand.

Upheaval of Political system

Stricter rules and regulations as Pres. Rodrigo Duterte mandated all

departments, agencies and operating units for the compliance in operating a business.
To alleviate any penalties and surcharges business owners must be able to comply all
the requirements (legalities) needed. This trend triggers high demand on law and
accounting firm services.

Government intervention shifting interest rates

ECONOMIC FORCE

Immunity to Negative Changes

The primary opportunity of owning and operating an accounting firm is that it is

generally immune from negative changes in the economy. People, especially small
business owners and real estate investor, are going to continue to need advice and
preparation of their taxes and financial statements in any economic climate. As such,
these are only services that a properly licensed CPA can provide to the general public.

Emerging Businesses

There is an increasing number of emerging businesses in the society. This

means an increased growth rate of target markets and an opportunity for them to have
more clients seeking accounting and taxation services.

Stiff Competition

The primary threat faced by accounting firms is the stiff competition among
individuals or companies operating in identical capacity. Competition has increased in
all fronts. Firms of similar size have grown and expanded and there are more sole
proprietors and licensed tax consultants and bookkeeping services. As long as
individuals met the appropriate requirements and acquire license, they can be a
competitor to Ochoco firm. There is a stiff competition from existing industry players,
sole practitioners and new firms.

Inflation

The inflation on the Philippines also brings threat to the firm. Since inflation
affects the sales, profit, and growth of several businesses, they opt to approach to sole
practitioners which provide the same services as Ochoco but charge less.

SOCIO-CULTURAL FORCE

Rise of Millenial Clients

Accounting firms who start gaining millennial client base can now look forward to
handsome future rewards. As the next generation of business owners, millennials stand
to be the generation making the big dollars in the next decades. Business owners,
unlike many corporate workers, need their own accountants and need a lot more
accounting services. Finding financial models that suit the millennials gains their trust.
When accountants provide experiential advice that helps millennials achieve their
dreams, they become trusted advisors. This means repeat business. All this adds up to
big millennial business for accountants and accounting firms.

Change of Market’s Preference

One consistent trend that has threatened traditional brick-and-mortar accounting

operations is the growing prevalence of online tax preparation and accounting software.
Traditionally, accountants have been able to compete with accounting software because
these software are unable to manage the tax needs of most businesses. However,
when the new tax law simplified tax preparation, competition from software grew. Over
the next five years, IBISWorld projects brick-and-mortar accounting companies to
experience greater threats from software. Moreover, in line with the rise of millennial
clients, and the increasing number of accounting firms, another threat or challenge
would be enticing this new generation of clients, followed by the challenge of retaining
its existing clients. Thus, accountants should really adapt to the changes in the market
to prevent clients from moving to their competitors.
Under the table transactions

Transaction under the table is the act of offering and receiving bribe with the
intention of influencing the recipient in some way favorable to the party providing the
bribe. The bribe that is offer to the other individual can be in the form of money or gift.
This trend is very relevant in the business world. Like for an instance (a taxpayer offer
something to the assigned personnel in the firm who offers tax advisory and compliance
services to lessen his/her tax to be paid). This act is a threat for it will surely ruin/destroy
the integrity and reputation of the said firm.

TECHNOLOGICAL

Predictive Analytics

Predictive Analytics is the use of advanced data analysis techniques to make

predictions. It is an opportunity for the firm since auditors can employ digital tools to
extract information from an organization’s systems, and then use predictive analytics for
the purpose of identifying patterns that either align or don’t align with anticipated
outcomes and trends. It assess whether the client’s financial or other data conform to
the expected norms for comparable historical data from both within the company as well
as from companies in comparable circumstances. As this capability comes into wider
use, auditors will have a powerful tool to grasp the accuracy of reported information and
promote audit quality—with comparative data as a benchmark.

Advancement of Technology

Accounting firms has benefited from firm-based software that is enabling them to
become increasingly more productive with their existing resources. Unfortunately,
technological advancements are also creating greater challenges in the competitive
environment. Easy internet-based programs simplify the process for the user and
remove the need for many people to seek out specialized tax or bookkeeping services.
Advancements in technology are offering new opportunities to clients and as a result,
putting accountants at risk of losing their clients. Continued sophistication and
affordability of software replaces or minimizes the role of a CPA for tax preparation,
accounting, and bookkeeping services.