A FEASIBILITY STUDY ON OUTSOURCING ACCOUNTING AND TAX

SERVICES
About the Business
IZON Accounting and Tax Services is an outsourced service company that provides
accounting and bookkeeping, tax, payroll, and business registration services to micro,
small, and medium enterprises (mSMEs) and practitioners in Quezon City.

It is a partnership form of business.

The business name “IZON” meaning reliance represents the business as a reliable
provider of high quality accounting and tax services.
Vision, Mission and Core Values
Mission
To have a strong connection with the clients by providing services with utmost professionalism and
integrity.

Vision
To become the primary provider of high quality outsourced accounting and tax services that leads to
ultimate client satisfaction.

Core Values
I – Integrity
Z – Zealous (Exhibiting strong enthusiasm or passion)
O – Objectivity
N – Nobility
Keys to Success
Building trust with clients
Maintaining up-to-date CPA certification and education on accounting practices and
laws
Going beyond saving clients money to proposing how they can increase their
revenues
Legal and ethical practices when it comes to transparency, reporting, and taxes
Description of the Logo

Our business came up with this logo from a Japanese word “izon” which means
reliance.
The green arrow symbolizes growth and is associated with wealth and stability. This is to
signify that our clients can rely on us on their business development whenever we
provide them high quality outsourced accounting and tax services.
Brief Description of the Project

This feasibility study is conducted by the proponents to know the degree of target
market’s acceptance with regards to the proposed business of outsourcing accounting
and tax services.

Furthermore, this will provide a concrete plan that will assist on starting the proposed
business.
General Objectives of the Project

 to be able to change the perception of people regarding outsourcing accounting and tax
services,

 to increase the level of awareness of clients on the different ways accounting and tax
services are provided,

 to line up with other competitors using our unique approach in providing accounting and
tax services, and

 to offer an affordable but high-quality accounting and tax services.

 MARKET STUDY

Objectives:
to analyze the market demand and supply of the business,
to analyze the market share and projected sale,
to define the target customer of the business through market segmentation,
to determine the marketing strategies to be applied in the business,
to determine the range of the business,
to analyze and understand the complexities of the outsourced accounting and tax
services business,
to determine the feasibility of the business.
Target Market
LEVEL OF INCOME 2015 2016 2017 2018 2019 2020 2021 2021 2023 2024

Php 1,500,001 to Php

3,364.35 10,195 10,535 10,659 14,176 18,855 25,077 33,352 44,358 58,997
5,000,000
Php 5,500,001 to Php
1,987.92 6,024 6,408 6,705 8,918 11,860 15,774 20,980 27,903 37,112
15,000,000
Php 15,000,001 to Php
1,153.02 3,494 3,789 4,128 5,490 7,302 9,712 12,917 17,179 22,848
60,000,000

Php 500,000 and less 11,556.93 35,021 36,661 39,040 51,923 69,058 91,847 122,156 162,468 216,083

Php 500,000 to Php

4,272.51 12,947 13,174 13,797 18,350 24,406 32,459 43,171 57,417 76,365
1,500,000

Php 20,000 to 35,000 1,116.06 3,382 4,153 4,784 6,363 8,462 11,255 14,969 19,909 26,479
Php 27,941 to Php 104,949 1,236.51 3,747 1,724 1,800 2,394 3,184 4,235 5,632 7,491 9,963
Php 21,000 (Civil,
Mechanical, Chemical
5,535.75 16,775 18,162 18,693 24,862 33,066 43,978 58,491 77,792 103,464
Electrical) – Php 101,000
(Aerononautical)
20,000 and Above 2,711.28 8,216 7,900 6,459 8,590 11,425 15,196 20,210 26,880 35,750
32,934.33 99,801.00 102,506.00 106,065.00 141,066.00 187,618.00 249,533.00 331,878.00 441,397.00 587,061.00

2019-2024 is based on the Target Market

Growth of 33.33%
Market Segmentation
Geographic
Location: City: Quezon City
Region: National Capital Region
(NCR)
Density of the Area: Urban
Demographic
Sex: Male & Female
Age: 26 up to 45 years old
Monthly Income: Php 11,000 up
to Php 50,000
Daily Transaction: 51 up to 150
transactions
Firmographic
micro, small, and medium
enterprises (mSMEs)
Practitioners
Psychographic
Personality: Hardworking,
Responsible, Decision-makers
Lifestyle: Business-oriented
Historical Demand and Supply for the Industry
Table 1.1
Year Historical Demand Historical Supply
2015 20,823 19,439
2016 63,099 58,908
2017 64,809 60,504
2018 67,060 62,605
2019 89,189 83,264
Historical Demand and Supply for the Services
Table 1.2
Services Accounting and Bookkeeping (2.6) Payroll Services (2.3)
Year Historical Demand Historical Supply Historical Demand Historical Supply
2015 541 505.42 479 447.1
2016 1,641 1,531.60 1,451 1,354.87
2017 1,685 1,573.11 1,491 1,391.60
2018 1,744 1,627.73 1,542 1,439.91
2019 2,319 2,164.87 2,051 1,915.08
TOTAL 7,929 7,402.72 7,015 6,548.56

Services Tax Compliance Services (2.1) Business Registration Services (2.1)

Year Historical Demand Historical Supply Historical Demand Historical Supply

2015 437 408.23 437 408.23

2016 1,325 1,237.06 1,325 1,237.06
2017 1,361 1,270.59 1,361 1,270.59
2018 1,408 1,314.70 1,408 1,314.70
2019 1,873 1,748.55 1,873 1,748.55
TOTAL 6,405 5,979.12 6,405 5,979.12
Projected Demand and Supply for the Industry
Table 2.1
Year Historical Demand Historical Supply
2015 118,621 110,742
2016 157,767 147,286
2017 209,830 195,891
2018 279,073 260,535
2019 371,168 346,512
Projected Demand and Supply for the Services
Table 2.2
Services Accounting and Bookkeeping (2.6) Payroll Services (2.3)
Year Historical Demand Historical Supply Historical Demand Historical Supply
2015 3,084 2,879 2,728 2,547
2016 4,102 3,829 3,629 3,388
2017 5,456 5,093 4,826 4,505
2018 7,256 6,774 6,419 5,992
2019 9,650 9,009 8,537 7,970
TOTAL 29,548 27,585 26,139 24,402

Services Tax Compliance Services (2.1) Business Registration Services (2.1)

Year Historical Demand Historical Supply Historical Demand Historical Supply
2015 2,491 2,326 2,491 2,326
2016 3,313 3,093 3,313 3,093
2017 4,406 4,114 4,406 4,114
2018 5,861 5,471 5,861 5,471
2019 7,795 7,277 7,795 7,277
TOTAL 23,866 22,280 23,866 22,280
Demand and Supply Gap Analysis for the Industry
Table 3.1
Year Demand Supply Gap
2020 118,621 110,742 7,879
2021 157,767 147,286 10,481
2022 209,830 195,891 13,939
2023 279,073 260,535 18,538
2024 371,168 346,512 24,656
TOTAL 1,136,459 1,060,966 75,493
Demand and Supply Gap Analysis for the Services
Table 3.2
Services Accounting and Bookkeeping (2.6) Payroll Services (2.3)
Historical Historical
Year Historical Supply Gap Historical Supply Gap
Demand Demand
2020 3,084 2,879 205 2,728 2,547 181
2021 4,102 3,829 273 3,629 3,388 241
2022 5,456 5,093 363 4,826 4,505 321
2023 7,256 6,774 482 6,419 5,992 427
2024 9,650 9,009 641 8,537 7,970 567
TOTAL 29,548 27,585 1,963 26,139 24,402 1,737

Services Tax Compliance Services (2.1) Business Registration Services (2.1)

Historical Historical
Year Historical Supply Gap Historical Supply Gap
Demand Demand
2020 2,491 2,326 165 2,491 2,326 165
2021 3,313 3,093 220 3,313 3,093 220
2022 4,406 4,114 292 4,406 4,114 292
2023 5,861 5,471 390 5,861 5,471 390
2024 7,795 7,277 518 7,795 7,277 518
TOTAL 23,866 22,280 1,586 23,866 22,280 1,586
Service Fee Comparative Analysis
Table 4 Direct Competitors Indirect Competitors

IZON Accounting MPM Consulting RDE CPA Consultancy "The BIG FOUR" (PWC,
Services
and Tax Services Services Services SGV, Deloitte, KPMG)

Accounting and
2,000-3,000 2,500-5,000 2,500-5,000 3,000-10,000
Bookkeeping
Payroll 2,500-4,000 3,000-5,000 3,000-5,000 3,500-15,000
Tax Compliance 2,000-3,000 2,500-3,000 2,500-3,000 3,000-10,000
Business Registration 2,500-3,000 2,500-3,500 2,500-3,500 3,000-5,000
Note: Amounts in Philippine Peso
Projected Service Revenue for the Year 2020 Projected Service Revenue for the Year 2021
Table 5.1 Table 5.2
Services per Client Service Fee Monthly Services per Client Service Fee Monthly
Accounting and Accounting and
5 2,500.00 12,500.00 7 2,500.00 17,500.00
Bookkeeping Bookkeeping
Payroll 2 3,500.00 7,000.00 Payroll 3 3,500.00 10,500.00
Tax Compliance 5 2,500.00 12,500.00 Tax Compliance 7 2,500.00 17,500.00
Business
5 3,000.00 15,000.00 Business Registration 5 3,000.00 15,000.00
Registration
Monthly 47,000.00 Monthly 60,500.00
Yearly 564,000.00 Yearly 726,000.00
Note: Amounts in Philippine Peso
Projected Service Revenue for the Year 2022 Projected Service Revenue for the Year 2023
Table 5.3 Table 5.4
Services per Client Service Fee Monthly Services per Client Service Fee Monthly
Accounting and Accounting and
8 2,500.00 20,000.00 10 2,500.00 25,000.00
Bookkeeping Bookkeeping
Payroll 3 3,500.00 10,500.00 Payroll 4 3,500.00 14,000.00
Tax Compliance 8 2,500.00 20,000.00 Tax Compliance 10 2,500.00 25,000.00
Business
5 3,000.00 15,000.00 Business Registration 5 3,000.00 15,000.00
Registration
Monthly 65,500.00 Monthly 79,000.00
Yearly 786,000.00 Yearly 948,000.00
Note: Amounts in Philippine Peso
Projected Service Revenue for the Year 2024
Table 5.5
Services per Client Service Fee Monthly
Accounting and
11 2,500.00 27,500.00
Bookkeeping
Payroll 4 3,500.00 14,000.00
Tax Compliance 11 2,500.00 27,500.00
Business
5 3,000.00 15,000.00
Registration
Monthly 84,000.00
Yearly 1,008,000.00
Note: Amounts in Philippine Peso
Market Share Analysis for the Year 2020 Market Share Analysis for the Year 2021
Table 6.1 Table 6.2
SERVICE
BUSINESS PERCENTAGE BUSINESS SERVICE REVENUE PERCENTAGE
REVENUE
IZON Accounting IZON Accounting
564,000.00 36% 726,000.00 36%
and Tax Services and Tax Services
Direct Direct
Competitors: Competitors:
MPM Consulting MPM Consulting
595,333.33 38% 766,333.33 38%
Services Services
RDE CPA RDE CPA
Consultancy 235,000.00 15% Consultancy 302,500.00 15%
Services Services
Indirect Indirect
Competitors: Competitors:
"The BIG FOUR" "The BIG FOUR"
(PWC, SGV, 172,333.33 11% (PWC, SGV, 221,833.33 11%
Deloitte, KPMG) Deloitte, KPMG)
Total Sales 1,566,666.67 100% Total Sales 2,016,666.67 100%
Note: Amounts in Philippine Peso Note: Amounts in Philippine Peso
Market Share Analysis for the Year 2022 Market Share Analysis for the Year 2023
Table 6.3 Table 6.4
SERVICE
BUSINESS PERCENTAGE BUSINESS SERVICE REVENUE PERCENTAGE
REVENUE
IZON Accounting IZON Accounting
786,000.00 36% 948,000.00 36%
and Tax Services and Tax Services
Direct Direct
Competitors: Competitors:
MPM Consulting MPM Consulting
829,666.67 38% 1,000,666.67 38%
Services Services
RDE CPA RDE CPA
Consultancy 327,500.00 15% Consultancy 395,000.00 15%
Services Services
Indirect Indirect
Competitors: Competitors:
"The BIG FOUR" "The BIG FOUR"
(PWC, SGV, 240,166.67 11% (PWC, SGV, 289,666.67 11%
Deloitte, KPMG) Deloitte, KPMG)
Total Sales 2,183,333.33 100% Total Sales 2,633,333.33 100%
Note: Amounts in Philippine Peso Note: Amounts in Philippine Peso
Market Share Analysis for the Year 2024
Table 6.5
SERVICE
BUSINESS PERCENTAGE
REVENUE
IZON Accounting
1,008,000.00 36%
and Tax Services
Direct
Competitors:
MPM Consulting
1,064,000.00 38%
Services
RDE CPA
Consultancy 420,000.00 15%
Services
Indirect
Competitors:
"The BIG FOUR"
(PWC, SGV, 308,000.00 11%
Deloitte, KPMG)
Total Sales 2,800,000.00 100%
Note: Amounts in Philippine Peso
Market Situation and Analysis
Direct Competitors
• MPM Consulting Services: a business process outsourcing company that provides
outsourced services on bookkeeping, tax payroll, business registration services and
training services.
• RDE CPA Consultancy Services: a full-service provider of Accounting System
Automation, Internal Audit & Reporting Automation, Outsourced Accounting &
Bookkeeping, Audit & Assurance, Taxation, consulting, and other business solutions.
Indirect Competitors
• The “BIG FOUR”: composed of the top accounting firms in the Philippines namely PWC,
SGV, Deloitte, and KPMG. These are considered indirect competitors for they are also
engaged in providing accounting and tax services in Quezon City.
• For bookkeeping services, the business also must compete indirectly against the
prospect of businesses hiring their own part-time bookkeepers. This gives businesses
the advantage of greater control and perhaps development of a future full-time
employee.
Competitive Edge
 combination of CPA oversight with lower-level, inexpensive labor
 extensive target market in Quezon City is
Marketing Strategies
Expand its Web presence through website development and marketing
Initiate a systematic client referral program to prospect within existing clients and
their contacts
Use print ads in local business publications to target small business readers
5-year Marketing Program Budget
Table 7
PROMOTION AND ADVERTISING 2020 2021 2022 2023 2024
Flyers and Posters 4,500 4,635 4,774 4,917 5,065
Website and Social Media 7,500 7,725 7,957 8,195 8,441
Transit Media 2,250 2,318 2,387 2,459 2,532
Other 750 773 796 820 844
Total 15,000 15,450 15,914 16,391 16,883
Note: Amounts in Philippine Peso, annual increase of 3%
 TECHNICAL STUDY
Objectives:
to identify the kind of service the proposed business have including its description and
procedure,
to determine the process to be used in rendering services and how to distribute or
deliver it to the market,
to describe the geographical location of the business,
to illustrate the store size and store layout of the business,
to determine the supplies needed and all necessary technologies and/or machineries
and equipment to be used in the operation of the business,
to determine where to acquire the supplies and necessary utilities for the operation of
the business,
to define the human requirements and regulations of the business,
to know the methods of waste disposal for the maintenance of the business office.
Service Description
Table 8
SERVICES Description

Includes Bookkeeping of Financial Transactions,

Preparation/ Compilation of Financial Reports, Data
Accounting and Bookkeeping
reconciliation services (bank reconciliation, accounts
reconciliation), Reconstruction of books of accounts

Includes Periodic payroll computation, Payment of

Payroll Services Monthly Contributions

Online/Manual Filing of Monthly report

Includes Filing of Monthly, Quarterly, Annual
Tax Compliance Services
Tax Compliance and Other Reportorial Requirements

Includes Registration of business with DTI or SEC,

Business Registration Services Registration with BIR, Registration with SSS, PHIC, and
HDMF, Secure Mayor’s Permit/ Business Permit
Accounting and Bookkeeping Services
Payroll Services
Tax Services
Our Tax Services includes:
• Monthly computation and preparation of the following BIR Tax Returns:
• BIR Form 1601E – Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded)
• BIR Form 1601C – Monthly Remittance of Income Taxes Withheld (Compensation)
• BIR Form 2551M – Monthly Percentage Tax Return
• BIR Form 2550M – Monthly Value-Added Tax (VAT) Declaration
• Quarterly computation and preparation of the following BIR Tax Returns:
• BIR Form 1701Q – Quarterly Income Tax Return for Self-Employed Individuals, Estates, Trusts (including those with both business and
compensation income)
• BIR Form 2550Q – Quarterly Value-Added Tax (VAT) Return
• BIR VAT Relief Files – Schedules of sales, purchases, and importations

Annual computation and preparation of the following BIR Tax Returns:

• BIR Form 1702 – Annual Income Tax Return for Corporation, Partnership and Other Non-individual Taxpayers
• BIR Form 1701 – Annual Income Tax Return for Self-Employed Individual
• BIR Form 1700 – Annual Income Tax Return for Individual Earning Purely Compensation Income (for employees)
• BIR Form 1604CF – Annual Information Return of Income Tax Withheld on Compensation and Final Withholding taxes
• BIR Form 1604E – Annual Information Return of Creditable Income Tax Withheld (Expanded)
• Preparation of Certificate of Withholding Tax Returns:
• BIR Form 2307 – Certificate of Creditable Tax Withheld at Source
• BIR Form 2316 – Certificate of Compensation Payment/ Tax Withheld for Compensation Payment With or Without Tax Withheld
Business Registration Services
We offer our assistance in acquiring business permits and licenses to various government
agencies.
• Our Business Registration Service Includes:
• We will provide registration forms and list of requirements to clients
• We will assist clients in filling-up registration forms and completing the requirements
• We will submit filed-up registration forms and other requirements to government agencies
• We will follow-up status of registration
• We will pick-up permits/licenses and deliver it to clients

Government Agencies
• Department of Trade and Industries (DTI)
• Securities and Exchange Commission (SEC)
• Local Government Units (LGUs) – such as Barangay and Mayor’s Office
• Bureau of Internal Revenue (BIR)
• Social Security System (SSS)
• Philippine Health Insurance Corporation (PhilHealth)
• Home Development Mutual Fund (HDMF/Pag-IBIG)
Business Location

IZON Accounting and Tax Services is located at 22 Kasoy St. Brgy.

Commonwealth, Quezon City.
Floor Plan
Office Equipment
Office Equipment
Table 9
Description Quantity Cost Total Cost

Computer Set 1 9,990 9,990

Laptop 2 14,500 29,000

Printer, Scanner, Fax
Machine, Photocopier 1 24,000 24,000
(All-in-one)
TOTAL 62,990

Accumulated Depreciation- Office Equipment

Table 9.1
Accumulated
Year Cost Remaining
Depreciation
2020 62,990 7,874 55,116
2021 62,990 15,748 47,243
2022 62,990 23,621 39,369
2023 62,990 31,495 31,495
2024 62,990 39,369 23,621
Total
Note: Amounts in Philippine Peso
Office Furniture and Fixtures
Furnitures and Fixtures
Table 10
Description Quantity Range/Price Total Cost
Assorted chairs – desk
chairs, waiting-room
1 10,500.00 10,500.00
seating, counter stools
(per set)
W aiting-room tables 1 5,200.00 5,200.00
Desks for the office
2 8,000.00 16,000.00
and reception area
Storage modules,
shelving, bookshelves
1 13,200.00 13,200.00
that double as room
dividers
Filing cabinets 1 15,000.00 15,000.00
W hiteboards 1 4,999.00 4,999.00
Conference tables and
1 15,000.00 15,000.00
seating
Office kitchen furniture
1 20,000.00 20,000.00
and appliances
Air Conditioner (inverter) 1 24,999 24,999
CCTV 2 4,995.00 9,990.00
Fire Extinguisher (31
1 3,850.00 3,850.00
lbs.)
Sprinkler 3 480.00 1,440.00
Fire Alarm 1 1,899.00 1,899.00
TOTAL 142,077.00

Accumulated Depreciation- Furnitures and Fixtures

Table 10.1
Accumulated
Year Cost Remaining
Depreciation
2020 142,077 17,760 124,317
2021 142,077 35,519 106,558
2022 142,077 53,279 88,798
2023 142,077 71,039 71,039
2024 142,077 88,798 53,279
Total
Note: Amounts in Philippine Peso
 Supplies
Supplies
Table 11
Description Quantity Unit Cost Total Cost
Sanitary Supplies
Supplies for Equipment
Toner cartridges or
printer ink
2 1,695.00 3,390.00 Description Quantity Unit Cost Total Cost
Spare computer mouse 1 242.00 242.00
Spare monitor
Spare keyboard
1
1
1,416.00
450.00
1,416.00
450.00
Mop 1 799.00 799.00
Mousepads 1 80.00 80.00
Monitor-mounting arms
USBs, adapters and
1 1,788.00 1,788.00 Cleaning towel 2 66.00 132.00
1 499.00 499.00
hubs
Screen wipes 5 57.00 285.00 Sponge and Scrub 2 15.00 30.00
Supplies for Paper works, desk and reception
Printer paper
Fax paper
1
3
800.00
65.00
800.00
195.00 Dust pan 1 50.00 50.00
Telephone-message
3 35.00 105.00
pads
Sticky notes 10 60.00 600.00 Trash Bin 3 380.00 1,140.00
W riting paper – letter and
5 560.00 2,800.00
legal sizes
Envelopes – letter, Hand Sanitizer 2 545.00 1,090.00
Manila in padded and 2 590.00 1,180.00
catalog size
Adding-machine paper
rolls
1 549.00 549.00 Dishwashing Liquid 2 85.00 170.00
Paper hole
reinforcements
Index tabs and dividers
2

2
156.00

980.00
312.00

1,960.00
Tissue paper 2 330.00 660.00
File folders 2 445.00 890.00
Pocket folders
Calendars
2
2
299.00
80.00
598.00
160.00
TOTAL 4,071.00
Planner refills 2 250.00 500.00
Time cards (per pack)
Staples and staplers (per
1

2
399.00

599.00
399.00

1,198.00
Emergency Supplies
set)
Pens (blue, black and
red ink), pencils,
highlighters, markers
1 924.00 924.00 Description Quantity Unit Cost Total Cost
(assorted sets)
Erasers 2 55.00 110.00 First Aid Kit (Complete
Push pins 2 72.00 144.00
1 625.00 625.00
Paperclips
Clamps and fasteners
2
2
137.00
67.00
274.00
134.00
Set)
Rubber bands 1 200.00 200.00
Tape – assorted
Schedule board
2
1
270.00
135.00
540.00
135.00
TOTAL 625.00
Office-chair mats or floor
protectors
TOTAL
4 2,766.00 11,064.00

33,921.00
Total Supplies 38,617.00
Utilities
Utilities
Table 12
Utilities 2020 2021 2022 2023 2024
Electricity (Meralco) 48,600 54,432 60,964 68,280 76,473
Telephone (PLDT) 429,072 480,561 538,228 602,815 675,153
Water (Maynilad) 14,520 16,262 18,214 20,400 22,848
Total 492,192 551,255 617,406 691,494 774,474

5 – year Computation of Electricity Consumption

Table 12.1
Annual Electric
Year Daily Monthly
Expense
2020 135 4,050 48,600
2021 151.2 4,536 54,432
2022 169.344 5,080 60,964
2023 189.66528 5,690 68,280
2024 212.4251136 6,373 76,473

5 – year Computation of Telephone Consumption

Table 12.2
Allowance for Monthly Annual
Year Minimum Charge EVAT (12% )
Long Distance Charge Charge
2020 1,400 144 500 35,756 429,072
2021 1,568 161 560 40,047 480,561
2022 1,756 181 627 44,852 538,228
2023 1,967 202 702 50,235 602,815
2024 2,203 227 787 56,263 675,153

5-year Computation of Water

Table 12.3
Monthly Annual
Year # cu.m used/mo Amt./cu.m
Consumptio Consumption
2020 121 10 1,210 14,520
2021 136 11 1,355 16,262
2022 152 13 1,518 18,214
2023 170 14 1,700 20,400
2024 190 16 1,904 22,848
Note: Amounts in Philippine Peso
 Rent
Rent Expense
Table 13
Annual Rent
Year Monthly
Expense
2020 15,000.00 180,000.00
2021 15,000.00 180,000.00
2022 15,000.00 180,000.00
2023 15,000.00 180,000.00
2024 15,000.00 180,000.00
Note: Amounts in Philippine Peso
Free Accounting Software
 Wave
 ZipBooks
 SlickPie
 xTuple PostBooks
 GnuCash
 Akaunting

Alternative Accounting Software (Paid)

 QuickBooks Online
 FreshBooks
 QuickBooks Self-Employed
 Odoo
 Xero
Office Uniforms

Corporate Attire
Waste Disposal

proper waste disposal by segregating biodegradable and non-biodegradable.

management shall have trash bins that sort recyclables and hazardous materials.
business will have its water sewages that connect on the proper creek. Its concern is
focus on reducing air and water pollution.
garbage collection is every Mondays and Fridays for biodegradable and every
Wednesdays for non-biodegradable.
 MANAGEMENT STUDY
Objectives:

to determine the form of the proposed business,

to analyze the organization and management aspect of the business,

to introduce or present the exact capitalization of the business,

to identify requirements and qualification, duties and responsibilities and salaries and
benefits of the business manpower,

to illustrate and clearly discuss the flow of authority and the policies that will serve as
guide of the entire business.
Form of Ownership
The type of business is a partnership.
It is to be registered with the Securities and Exchange Commission (SEC) for the
contract called articles of co-partnership.
By the contract of partnership, two or more persons bind themselves to contribute
money, property and industry with the intension of dividing the profits among
themselves.
Vision, Mission, Core Values
Vision
To become the primary provider of high quality accounting and tax services that leads to
ultimate client satisfaction.

Mission
To have a strong connection with the clients by providing services with utmost
professionalism and integrity.

Core Values
I – Integrity
Z – Zealous (Exhibiting strong enthusiasm or passion)
O – Objectivity
N – Nobility
Capitalization
Capitalization
Table 15
Partners Type of Partner Capital Souces of Capital

Industrialist-
Judy Ann L. Caubang 200,000 Personal Savings
Capitalist

Industrialist-
Claire A. Magpantay 200,000 Personal Savings
Capitalist

Industrialist-
Nichole A. Arena 200,000 Personal Savings
Capitalist

Steven Charles Gagante Capitalist 200,000 Personal Savings

Renalyn Bonus Capitalist 200,000 Personal Savings

Total 1,000,000
Manpower Requirements
 Legal Requirements

Municipality of Quezon City BIR

Business Permit 2316 Form
Barangay Business Clearance 1702 Form
Lease Contract 1903 Form
Locational Clearance 1907 Form
Picture of Establishment

DTI SSS
Application for Partnership R-5
Business Name Registration Form R-1
R-1A
SEC
Articles of Partnership
Registration Data Sheet
Organizational Policies and
Procedures
Employment

It is the company’s policy to select applicants based on the following factors:

Mental aptitude
Social skills
Physical fitness
Strength and weaknesses
Experience
Classification of Employees According to
Rank
a. Managerial Employee – One who is vested with powers or prerogatives to lay down and
execute management policies and/or hire, transfer, suspend, lay off, recall, discharge,
assign or discipline employees.
b. Supervisory Employee –One, who, inthe interest of the employer, effectively
recommend such managerial actions if the exercise of such authority is not merely
routinely or clerical in nature but requires the use of independent judgment.
c. Rank-and-file employee – all other employees not falling within any of the above
definitions.
Classification of Employees According
to Status
a. Contractual or Seasonal – An employee is hired for a specified period of time under
an agreement prior to or at the time of employment.

b. Probationary – an employee is hired on a probationary basis for a period not to

exceed six (6) months.

c. An employee is hired on a regular status upon satisfactory completion of the

probationary period and upon satisfaction of the criteria necessary for appointment as
regular status.
Orientation

All newly hired employees regardless of classification of rank and status must undergo
on orientation and indoctrination as to the Company’s vision, mission, policies, rules
and regulations, duties and responsibilities and menu familiarization.
Personnel Records
It is the responsibility of the company to update and maintain personnel records. It should
contain the following document and records:
Resume with 2x2 colored photo
Test results
Interview impressions
Mayor’s permit and health certificate (to be renewed every calendar year)
Transcript of records
TIN, SSS, PHIC, HDMF numbers
Employment contracts
Performance Evaluation forms
Certificate of trainings attended
Leave and violation records
Others
Contracts of Employment

All employees shall duly sign, execute and deliver the corresponding Contract of
Employment. All employees shall thereafter be issued a company identification card,
which must be worn at all times during working hours.
Work Schedule

It is the policy of the company to provide appropriate work hours without violating the
mandated rest days. As such, the company requires all employees to follow the six (8)
hours working shift, including one-hour break assigned to them.
Tune Keeping

The IZON Accounting and Tax Services Points Of Sales system is the official time indicator.
All employees are required to use the POS system to accurately record times of arrival and
departure.

Swipe cards will be issued to the employees on the first day of work. Swipe card will be
used to register the time of arrival, break and departure on the basis for payroll. Employees
should swipe out before taking their meal breaks and swipe in after taking their meal
breaks. Employees who forget to swipe in or out shall be charged as AWOL for the entire
shift.
Attendance
Every employee shall ask written permission from the Store Manager or Department Head, before
taking the leave of absence.
a. Unscheduled Absences
Employees must file an application for absence for at least one (1) week ahead to Store Manager or
Department Head

b. If employee incurred sickness and cannot report for work, he must call his supervisor or manager
at least two (2) hours before his duty. If no calls were received on the day of his absence or his call
came in late, this will be considered as AWOL. Upon return to work, he must file an absence slip
with medical certificate attached for signature and approval of Store Manager or Supervisor

c. Emergency Leave
If employees must go on emergency leave, he must file an absence slip immediately. Attached to
the absence slip must be documents justifying his reason for going on emergency leave.
Punctuality
It is the policy of the company to discourage tardiness as this affects the morale of the
punctual employees as well as the operations of the business.

Tardiness shall mean coming to work past the required starting time. It also means failure
to go back in the workplace immediately after break periods. Heavy traffic, oversleeping,
personal reasons, etc. do not constitute justification for late arrivals.

Only three (3) tardiness are allowed within one month. In excess of this, an employee is
subject to disciplinary action. Arrival in the workplace two hours after scheduled time will
be sufficient ground to consider an employee as absent for half day. Tardiness shall be
chargeable directly against basic pay.
Personnel Movement and Performance
Evaluation
It is management’s prerogative to assign, transfer, reclassify, promote or demote its
employees accordingly based on merit and performance. Thus, employees are
continuously evaluated as to their performance, work attitude, productivity, honesty
and diligence and may be served as bases for management’s decisions on personnel
movement.

Performance evaluation shall be done to every employee on his 3rd, 4th, and 5th month.
For regular employees, performance evaluation shall be done twice a year every May
and November of a calendar year.
Separation from Service
Voluntary Resignation
In case an employee intends to resign, he/she must give a one-month prior notice to the
management and must comply with all the clearance requirements; otherwise the
employee shall forfeit whatever remaining compensation due to him.

Termination
In all cases involving a termination of an employee’s service from the company, appropriate
notice of termination shall be furnished to the employee subject to clearances of all
accountabilities. As a matter of policy, terminated employees are not qualified for
reinstatement.
Compensation and Benefits

Salaries and Wages

All employees shall receive their respective salaries or wages as provided in their
Contracts of employment every 15th and last day of the month. Cut-off for payroll
computation is every 10th and 25th of the month.

Overtime Pay
Employees may be required to work beyond their shift or even on rest days due to work
requirements. Every effort should be made to avoid unnecessary overtime work and to
keep work within reasonable limits. All overtime work should have prior written
approval from the Store Manager. Every employee should file their overtime slips within
the pay-period to be compensated. No overtime slip, no overtime pays.
Cancelled Day-off/Holiday Pay
Every employee shall be provided with a rest period of twenty-four (24) hours after every
six (6) consecutive normal working days.
The following shall be considered regular holidays:

New Year’s Day 1-Jan

Maundy Thursday movable date
Good Friday movable date
Araw ng Kagitingan 9-Apr
Labor Day 1-May
Independence Day 12-Jun
last Sunday of
National Heroes Day
August
Ramadan movable date
Bonifacio Day 30-Nov
Christmas Day 25-Dec
Rizal Day 30-Dec
The following shall be considered special
All Saints Day 1-Nov
Last day of the Year 31-Dec
3th Month Pay
The 13th month pay of an employee which shall be equivalent to 1/12 of his basic salary
earned within a calendar year shall be given not later than December 24 of each year.

Paternity and Maternity Leave

Paternity and maternity leave benefits as provided by law shall be given to every employee
entitled thereto, upon complying with all the requirements of the company and upon
proper verification by the Company’s duly authorized representatives.

SSS/PHIC/HDMF Benefits
Benefits under SSS/PHIC/HDMF law shall be granted in accordance with applicable laws.
Implementation of procedures relative to entitlement of said benefits should be done in
accordance with the regulations to be promulgated by the management.
Hospitalization Plan
Regular employees shall be provided with hospitalization plan with a respectable Health
Maintenance Organization under terms and conditions to be solely decided by the
company.

Accident Insurance
Regular employees are enrolled by the Company under a reputable Insurance Organization.
Any accident incurred whether work-related or not shall be compensated by this Insurance
firm. This plan shall be on employer-employee participating basis.

Retirement Benefits
Retirement pay benefits as provided by law shall be given to all qualified employees upon
their retirement from the company.
Bereavement Assistance
If an immediate family member of a regular employee passed away, he shall be given a
financial assistance of P5000.00 upon complying with all the requirements of the
company and verification by its authorized representative.

Other Incentives and Awards

Awards and certificates of recognition, such as Crew of the Month, Best in Attendance,
Most Punctual Employee, Model Employee of the Year and the like shall be given the
discretion of management.
Code of Ethics

 Hygiene and Sanitation

 Arrival and Departure of Employees

 Procedure for Notices/Bulletin Boards

 Notice of Disciplinary Action

Code of Conduct
Kinds of Penalties
Offenses WR 3D 6D 9D TR
Tardiness 1st 2nd 3rd 4th 5th
Absence without leave 1st 2nd 3rd 4th 5th
Loitering or unauthorized leaving of post 1st 2nd 3rd 4th 5th
Extending break period 1st 2nd 3rd 4th 5th
Unauthorized use of company time for personal pusuit 1st 2nd 3rd 4th 5th
Insubordinate or disobedience to superior 1st 2nd 3rd
Negligence or carelesness 1st 2nd 3rd 4th 5th
Unauthorized use or misuse of company property 1st 2nd 3rd 4th 5th
Willful destruction of company properties 1st 2nd
Discourtesy towards customers, superiors and co-workers 1st 2nd 3rd 4th
Using profane language or obscene language to superiors 1st 2nd
Stealing or attempting to steal properties of company or co-workers 1st
Failure to comply with company rules and standards on performing services 1st 2nd 3rd 4th
Failure to comply with the related standards on service performance 1st 2nd 3rd 4th
Immorality or scandalous acts 1st
 Project Schedule Ganntt Chart
July August September October
Activities 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Business idea proposal
Conceptualizing & Conduct of Sruveys
Marketing Aspect
Techniccal Aspect
Management Aspect
Financial Aspect
Socio-economic Aspect
Final Defense
Project Schedule Ganntt Chart
November December January February
Activities 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Processing of Legal Requirements
Processing the Lease Contracts
Purchasing and Installation of Equipments
Hiring and Training of Personnel
Preparing all the Operation materials
Buasiness Operation Proper
 FINANCIAL STUDY
Objectives
 to make a realistic, complete, and conservative estimate of the total cost to put up a project of its
capital requirements,

 to determine the amount of capital financing available and borrowings needed, including possible
source and terms,

 to make complete, safe, and realistic projections of operating cost and revenues,

 to determine whether the project will be able to pay its total debt with a reasonable margin of safety,

 to determine the necessary financial arrangements to insure that the project will have the cash it
needs
when required,

 To determine the company’s earnings performance and the soundness and liquidity of its financial
positions.
Major Assumptions
 Sales increase by 5% every year.

 Depreciation method used is a straight line method.

 VAT paid is for 11 months (January to February) and VAT for December is paid on the 25th of
January of the subsequent year as stated in the NIRC.

 Withholding tax on salaries is payable on April 15 of the subsequent year.

 Income Tax for the current year is payable on April 15 of the subsequent year.

 Salaries increase by .5% every year.

 Utilities expense is paid as it comes due.

 Administrative and Selling expense increase 5% per year.

 IZON Accounting and Tax Services
Income Statement
Comparative Analysis
2020 2021 2022 2023 2024
Service Revenue 15,443,600 15,524,652 17,681,378 18,919,074 20,243,409
Cost of Service 1,214,104 1,218,049 1,217,080 1,215,150 1,213,051
Gross Profit 14,229,496 14,306,603 16,464,298 17,703,924 19,030,358
Less: Operating Expenses
Pre-operating Expense 150,000 - - - -
Permits and Licenses 15,169 12,230 12,230 12,230 12,230
Rent Expense 180,000 180,000 180,000 180,000 180,000
Utilities Expense 492,192 551,255 617,406 691,494 774,474
Promotion and Advetising Expense 15,000 15,450 15,914 16,391 16,883
13th Month Pay 210,758 211,812 213,930 216,069 218,230
Salaries Expense 1,128,094 1,133,734 1,139,403 1,145,100 1,150,825
Supplies Expense 30,894 37,072 38,308 38,555 38,605
Depreciation Expense 25,634 51,267 76,900 120,293 92,918
Total Operating Expense 2,247,741 2,192,820 2,294,091 2,420,132 2,484,165
Net Income before Tax 11,981,755 13,331,832 15,387,287 16,498,942 17,759,244
Less: Income Tax Expense 3,594,527 3,999,550 4,616,186 4,949,683 5,327,773
Net Income After Tax 8,387,229 9,332,282 10,771,101 11,549,259 12,431,471
Note: Amounts in Philippine Peso
 IZON Accounting and Tax Services
Statement of Changes in Partner's Equity
Comparative Analysis
2020 2021 2022 2023 2024
Beginning Balance - 7,119,683 14,730,105 11,912,505 13,898,236
Additional Investment 1,000,000
Net Income 8,387,229 9,332,282 10,771,101 11,549,259 12,431,471
Withdrawal of Partners 2,267,546 1,721,860 13,588,701 9,563,528 11,517,145
Ending Balance 7,119,683 14,730,105 11,912,505 13,898,236 14,812,562
Note: Amounts in Philippine Peso
 IZON Accounting and Tax Services
Statement of Cash Flow
Comparative Analysis
2020 2021 2022 2023 2024
Cash Flow from operating activities
Cash Sales 15,443,600 15,524,652 17,681,378 18,919,074 20,243,409
Pre operating Expense 150,000 - - - -
Payment for Rent 180,000 180,000 180,000 180,000 180,000
Payment for Utilities 492,192 551,255 617,406 691,494 774,474
Payment for Supplies 30,894 37,072 38,308 38,555 38,605
Payment for Permits and Licenses 15,169 12,230 12,230 12,230 12,230
Payment for Promotion and Advertising 15,000 15,450 15,914 16,391 16,883
Payment for 13th Month Pay 210,758 211,812 213,930 216,069 218,230
Payment for Salaries 1,128,094 1,133,734 1,139,403 1,145,100 1,150,825
Payment for SSS Contribution 27,467 27,467 27,467 27,467 27,467
Payment for Philhealth Contribution 26,400 26,400 26,400 26,400 26,400
Payment for HDMF Contribution 4,800 4,800 4,800 4,800 4,800
Payment of Withholding Tax - 48,672 48,672 48,672 48,672
Payment of Income Tax - 3,249,513 3,534,745 3,778,070 4,038,979
Payment of VAT 1,853,232 1,982,958 2,121,765 2,270,289 2,429,209
Depreciation Expense 25,634 51,267 76,900 120,293 92,918
Net cash inflow from operating activities 11,309,595 8,043,289 9,700,338 10,463,537 11,276,635
Cash flow from investing activites
Purchase of equipment 87,989 - - - -
Purchase of furniture and fixtures 109,889 - - - -
Net cash outflow from invesing activities 197,878 - - - -
Cash flow from financing activities -
Investment of Partners 1,000,000 - - - -
Net cash Flow flow from financing activities 1,000,000 - - - -
Net Cash Flow 12,111,717 8,043,289 9,700,338 10,463,537 11,276,635
Beginning Balance of Cash - 12,111,717 8,043,289 9,700,338 10,463,537
Ending Balance of Cash 12,111,717 20,155,006 17,743,627 20,163,875 21,740,172
Note: Amounts in Philippine Peso
 IZON Accounting and Tax Services
Statement of Financial Position
Comparative Analysis
2020 2021 2022 2023 2024
ASSETS
Current Assets
Cash 12,111,717 20,155,006 17,743,627 20,163,875 21,542,294
Supplies 38,617 46,340 47,885 48,194 48,256
Total Current Assets 12,150,334 20,201,346 17,791,512 20,212,069 21,590,550
Non-Current Assets
Equipment, net 55,116 47,243 39,369 31,495 23,621
Furniture and Fixture, net 124,317 106,558 88,798 71,279 53,279
Total Non-current Assests 179,433 153,801 128,167 102,774 76,900
Total Assets 12,329,767 20,355,147 17,919,679 20,314,843 21,667,450
LIABILITIES AND PARTNER'S EQUITY
Liabilities
VAT Payable 1,853,232 1,982,958 2,121,765 2,270,289 2,429,209
Withholding Tax Payable 48,672 48,672 48,672 48,672 48,672
Income Tax Payable 3,249,513 3,534,745 3,778,070 4,038,979 4,318,340
SSS Contribution Payable 27,467 27,467 27,467 27,467 27,467
Philhealth Contribution Payable 26,400 26,400 26,400 26,400 26,400
HDMF Contribution Payable 4,800 4,800 4,800 4,800 4,800
Total Liabilities 5,210,084 5,625,042 6,007,174 6,416,607 6,854,888
Partner's Equity
Arena, Capital 1,779,921 3,682,526 2,978,126 3,474,559 3,703,141
Bonus, Capital 1,779,921 3,682,526 2,978,126 3,474,559 3,703,141
Caubang, Capital 1,779,921 3,682,526 2,978,126 3,474,559 3,703,141
Gagante, Capital 1,779,921 3,682,526 2,978,126 3,474,559 3,703,141
Magpantay, Capital 1,779,921 3,682,526 2,978,126 3,474,559 3,703,141
Total Partner's Equity 7,119,683 14,730,105 11,912,505 13,898,236 14,812,562
Total Liabilities and Partner's Equity 12,329,767 20,355,147 17,919,679 20,314,843 21,667,450
Note: Amounts in Philippine Peso
Financial Ratios
Liquidity Ratios
Current Ratio
2020 2021 2022 2023 2024
Current Assets 12,150,334 20,201,346 17,791,512 20,212,069 21,590,550
Divided by Current Liabilities 5,210,084 5,625,042 6,007,174 6,416,607 6,854,888
Current Ratio 2.33 3.59 2.96 3.15 3.15

Working Capital
2020 2021 2022 2023 2024
Current Assets 12,150,334 20,201,346 17,791,512 20,212,069 21,590,550
Less Current Liabilities 5,210,084 5,625,042 6,007,174 6,416,607 6,854,888
Working Capital 6,940,250 14,576,304 11,784,338 13,795,462 14,735,662

Quick Ratio
2020 2021 2022 2023 2024
Quick Assets 12,150,334 20,201,346 17,791,512 20,212,069 21,590,550
Divided by Current Liabilities 5,210,084 5,625,042 6,007,174 6,416,607 6,854,888
Quick Ratio 2.33 3.59 2.96 3.15 3.15
 Solvency Ratios
Debt to Total Assets Ratio
2020 2021 2022 2023 2024
Total Liabilities 5,210,084 5,625,042 6,007,174 6,416,607 6,854,888
Divided by Average Assets 18,225,501 26,276,513 27,892,185 29,107,825 31,696,585
Debt to Total Assets Ratio 0.29 0.21 0.22 0.22 0.22

Debt to Equity Ratio

2020 2021 2022 2023 2024
Total Liabilities 5,210,084 5,625,042 6,007,174 6,416,607 6,854,888
Divided by Partner's Equity 7,119,683 14,730,105 11,912,505 13,898,236 14,812,562
Debt to Total Equity Ratio 0.73 0.38 0.50 0.46 0.46
 Profitability Ratios
Gross Profit
2020 2021 2022 2023 2024
Gross Profit 14,229,496 14,306,603 16,464,298 17,703,924 19,030,358
Divided by Net Sales 15,443,600 15,524,652 17,681,378 18,919,074 20,243,409
Gross Profit 0.92 0.92 0.93 0.94 0.94

Profit Margin
2020 2021 2022 2023 2024
Net Income 8,387,229 9,332,282 10,771,101 11,549,259 12,431,471
Divided by Net Sales 15,443,600 15,524,652 17,681,378 18,919,074 20,243,409
Profit Margin 0.54 0.60 0.61 0.61 0.61

Operating Expense to Sales

2020 2021 2022 2023 2024
Operating Expense 2,247,741 2,192,820 2,294,091 2,420,132 2,484,165
Divided by Net Sales 15,443,600 15,524,652 17,681,378 18,919,074 20,243,409
Operating Expense to Sales 0.15 0.14 0.13 0.13 0.12

Return on Total Assets

2020 2021 2022 2023 2024
Net Income 8,387,229 9,332,282 10,771,101 11,549,259 12,431,471
Divided by Average Total Assets 12,150,334 20,201,346 17,791,512 20,212,069 21,590,550
Return on Total Assets 0.69 0.46 0.61 0.57 0.58

Return on Equity
2020 2021 2022 2023 2024
Net Income 8,387,229 9,332,282 10,771,101 11,549,259 12,431,471
Divided by Average Partner's Equity 10,679,525 22,095,158 17,868,758 20,847,354 22,218,843
Return on Equity 0.79 0.42 0.60 0.55 0.56

Asset Turnover
2020 2021 2022 2023 2024
Net Sales 15,443,600 15,524,652 17,681,378 18,919,074 20,243,409
Divided by Average Total Assets 12,150,334 20,201,346 17,791,512 20,212,069 21,590,550
Asset Turnover 1.27 0.77 0.99 0.94 0.94
 SOCIO-ECONOMIC STUDY

Objectives:
to determine the contributions of the business to the Philippine economy,

to describe the benefits of the business to its community,

to ensure the active participation in the maintenance of cleanliness in the

environment.
Socio-Economic Contributions
 Contribution to the Philippine Economy
IZON Accounting and Tax Services will definitely contribute additional earnings to our government
by means of paying the right taxes.

 Employment Generation
The business will provide job opportunities to many individuals most especially to those people who
have great passion in accounting and tax services. Every society wants all its qualified members to
be gainfully employed.

 Environment Conservation
IZON Accounting and Tax Services will be sensitive enough to our environment by means of assuring
that the processes involve in the business operations will be environmental friendly. Moreover, the
firm will apply the principle of Corporate Social Responsibility (CSR).
Legal Documents