PROPOSED PROJECT TITLE: Accountancy Review Center Click to edit Master subtitle style AREA OF COVERAGE OR LOCATION: XYZ

YZ Building, Mabini Street, Tuguegarao City, Cagayan TARGET BENEFICIARIES OR CLIENTELE: CPA Reviewees

4/28/12

A Project Proposal on Establishment of ACCOUNTANCY REVIEW CENTER

PROJECT OBJECTIVES:
General Objective:

To establish an accountancy review center that offers accessible and affordable but quality review programs and assures success in passing the CPA Board Examination.

Specific Objectives:
To
4/28/12

assist Accountancy graduates in

SCOPE OF THE STUDY:

This

study focuses on the different critical aspects in the establishment of an accountancy review center in Tuguegarao City.

4/28/12

METHODOLOGY:
Online

research was utilized in order to obtain the newest and latest information regarding practices or processes of the accountancy field. Information such as schedule of review, services rendered by existing review centers and their terms concerning review registration. Such information are needed for the review center to be updated on trends in a review center for it to be able to keep 4/28/12

Interviews

were utilized in order to avail of information from schools regarding their terms and conditions for Accountancy graduates in entering into a review center. Also information such as number of graduates and enrollees were inquired from Commission on Higher Education (CHED) for the sake of projecting the possible number of reviewees that may join 4/28/12 our review center. Interview with

Canvassing

was done in order to have information regarding prices of equipments, supplies, furnitures and fixtures and also cost of materials for possible renovation or improvement of site. Aside from these, prices as to accommodation and transportation were also gathered for the projection of reviewers travel and other allowances. Prices concerning 4/28/12 souvenirs and promotional packages

INTRODUCTION
Bachelor

of Science in Accountancy is a course requiring focus and diligence because it usually involves crucial screening before students graduate. The adversities continue until the students pass the licensure examination for them to fully exercise their profession and eventually reap the rewards it brings. a formal review in a competent review center significantly
4/28/12

Undergoing

While

it is advantageous for candidates to undergo formal review, the cost it requires is very substantial which restraint some of the candidates to pursue such review which may even discourage them to take the board examination. This is because most of the review centers are located in the Manila.

4/28/12

EXECUTIVE SUMMARY
The

business shall be known with the name SURE PASS Accountancy Review Center (hereinafter referred to as SPARC) and shall be located at XYZ Building, in front University of Saint Louis Tuguegarao. It shall cater to the fresh graduates, the re-takers and those with conditional ratings may add up to the potential demand for the undertaking. Also, graduates from nearby towns and from other regions 4/28/12

MARKETING ASPECT
Demand
Total

number of graduates in the Bachelor of Science in Accountancy would dictate the possible demand for the project. From the table below, an average of 269 students graduated in BS Accountancy from AY 2005-2006 to AY 2009-2010.
4/28/12

Table 1
Number of Graduates in BS Accountancy Program, Region 02

AY 2005-2006 to 2009-2010
Private Public
Total Male Female

Academic Year Male

Total Graduates Total

Female

2005-2006

97 140 83 85 99

167 125 135 132 164

264 265 218 217 263

11 6 16 17 17 12 8 31

0 28 18 24 48

264 293 236 241 311

2006-2007

2007-2008

2008-2009

2009-2010

4/28/12

It can be seen that there is a high demand for the project. The project should be able to attract majority of such potential demand. Moreover, with the increasing trend, said demand will continuously increase, thus, more chances for the review center to draw more reviewees in the incoming years. The table below shows the forecasted number of graduates or the potential 4/28/12 demand until AY2019-2020.

Academic Year

Total Graduates

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 4/28/12

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

264 293 236 241 311 282 285 290 294 298 303 307 311 315 319

Supply The source of enrollees of the review center

are the enrollees in the BS. Accountancy course.
Academic Year

Private

Public

Male Female 753 858 904 1,016 1,141 1,305 1,384 1,627 1,948 2,198

Total 2,058 2,242 2,531 2,964 3,339

Male Female 109 107 119 124 143 87 74 85 236 246

Total 196 181 204 360 389

Total Enrollees

2006-2007

2,254 2,423 2,735 3,324 3,728

2007-2008

2008-2009

2009-2010

2010-2011

4/28/12

Marketing Program
Mass

advertisements through radio stations, streamers and flyers shall be used. This is to establish a good number of potential clients. The radio advertisements will be aired at different FM Stations preferably one in Cagayan, Isabela, Nueva Viscaya and Ilocos Norte to widen knowledge of prospective clients regarding SPARC Accountancy Review Center. A university visit shall be 4/28/12 held two months prior to graduation

Pricing Method
The

pricing method adopted by the proposed business for the review services is based on the going-rate pricing method. In going rate method, companies base their prices on competitors prices. The simplicity of going rate pricing makes it popular. Where costs are difficult to measure, or competitive response is uncertain, firms feel that the going price represents a good solution. The going price thought 4/28/12

Competitors
Accountancy

Review Center will be competing with the existing CPA Review Centers in the Philippines who offers both walk-in and in-house review to the potential customer. nearest competitors are located at Santiago City, Isabela. These were the CARTS and ARTS.

The

4/28/12

TECHNICAL ASPECT
Services

SPARC shall provide competent review to CPA candidates that shall include fresh and old graduates, re-takers and those on conditional status in their latest board examination. SPARC shall cater to a maximumTIMEeighty reviewees per of SESSION DAYS NO.OFHOURS session with the following schedules: Morning MondaytoFriday 8:00A.M.-12:00N.N. 360
Afternoon Evening Weekend MondaytoFriday MondaytoFriday
1:00P.M.-5:00P.M. 6:00P.M.-10:00P.M.

Service Processes/Operation of the Business

360 360 360

Saturday&Sunday 7:00A.M.-12:00N.N.

1:00P.M.-6:00P.M.

4/28/12

FEES

(Nonrefundable) 10,500.00 7,000.00 2,500.00 2,000.00 11,500.00

Cash Basis Installment Basis: Downpayment 1st partial 2nd partial Total
4/28/12

Requirements for registration

Three For

(3) pictures (1 x 1 )

summa/magna/cum laude graduates:

Certification from the Dean/ Registrar of Original copy of Transcript of Records.

being an honor graduate of your school.

Reservation Procedures
4/28/12

FINANCIAL ASPECT
INCOME STATEMENT
Revenue Less: Review materials (a) Cash Prizes/ Plaque of Recognition Souvenirs (b) Office supplies (c) Utilities expense Year 1 3,701,250.00 39,592.80 150,000.00 98,700.00 64,446.22 58,000.00 Salaries (e) 2,087,000.00 13th Month Pay, Bonuses & Benefits 300,000.00 Depreciation (f) 143,307.33 Advertising expense (g) 81,640.00 Pre-opening expenses Transportation expense INCOME BEFORE TAX Less: INCOME TAX (35%) 4/28/12 NET INCOME 45,860.00 180,000.00 2,099,453.65 734,808.78 294,257.37 Year 2 3,740,625.00 40,014.00 150,000.00 99,750.00 56,712.67 63,800.00 2.087,000.00 300,000.00 143,307.33 73,476.00 198,000.00 2,167,440.00 758,604.00 343,567.25 Year 3 3,806,250.00 40,716.00 150,000.00 101,500.00 49,907.15 70,180.00 2,087,000.00 300,000.00 143,307.33 66,128.40 217,800.00 2,205,461.12 771,911.39 376,812.23

SPARC Statement of Cash Flows

YEAR 1
Cash Flow from Operation Net Income Add: Depreciation Increase in Tax Payable Less: Increase in Current Assets Net Cash Flow from Operation Cash Flow from Financing * Less: Acquisitions of PPE ** Net Cash Used in Investing

YEAR 2

YEAR 3

294,257.37 143,307.33 158,446.28 16,111.55 579,899.43 700,000.00 538,770.00 161,230.00

343,567.25 143,307.33 26,551..47 4,833.47 508,592.59 -

376,812.23 143,307.33 17,901.14 2,738.96 535,281.74 -

4/28/12

SPARC BALANCE SHEET

Year 1 ASSETS
Current Asset Cash Office Supplies Total Current Assets Non-current Asset Furniture & Fixtures Equipments Total Non-current Assets

Year 2

Year 3

741,129.43 16,111.55 1,107,990.98

1,249,722.02 20,945.02 1,387,929.54

1,785,003.75 23,683.98 1,682,093.99

106,196.00 289,266.67 395,462.67

63,522.00 188,633.33 252,155.33

20,848.00 88,000.00 108,848.00

4/28/12

BOOK VALUE OF PPE Year 1

EQUIPMENTS FURNITURE & FIXTURES

Year 2 188,633.33 63,522.00

Year 3 88,000.00 20,848.00

289,266.67 106,196.00 SPARC

STATEMENT OF PARTNERS' EQUITY

Year 1
BeginningCapitalBalance Add:NetIncome Total Less:Withdrawals EndingCapitalBalance

Year 2
768,644.87 1,408,836.00 2,177,480.87 1,296,000.00 881,480.87

Year 3
881,480.87 1,433,549.73 2,315,030.60 1,296,000.00 1,019,030.60

700,000.00 1,364,644.87 2,064,644.87 1,296,000.00 768,644.87

4/28/12

4/28/12