Case
Accounting System Setup Support
for New Subsidiaries
Case
Accounting System Setup Support for New Subsidiaries
▼Overall
Accounting System Setup Support
for New Subsidiaries
The newly established subsidiary limited of resources, had no choice but to face their business with personnel without accounting experience and minimal solutions.
They were under group management with great potential for future growth.
There was a need to lighten the workload of inputting data into the accounting software and stabilize accounting operations.
With the consumer tax invoice system to be implemented, we still continue to provide support to enable the company to adapt to future growth, even after implementing the accounting system.
▼Approach to problem solving
When coping with regulation compliance and selection of accounting software, the company's internal circumstances and future potential must be taken into account
It is almost impossible to allocate accounting or tax personnel from the mother company when establishing a new subsidiary or launching a new business spin out from a group managed company. Moreover, the new company is mostly focused on their main business, with back-office tasks given lower priority. As a result, financial officer are inclined to follow the practices of other similar sized companies.
Most people think that back office operations can be properly structured as the company grows, but trying to change framework or workflow once created is inefficient and requires double the effort.
Therefore, when establishing a new company, it is essential to:
- Implement accounting software overlooking future growth
- Select software that can be easily handled such as software compatible with Microsoft Excel, to ensure business continuity and efficiency
- Focus on human resource development
Additionally, with renewed bookkeeping requirements related to the Consumption Tax Invoice System and the Digital Bookkeeping Act, it is crucial to select accounting software that not only complies with these systems but also improves the efficiency of accounting tasks.
▼Flow of service support
Accounting and tax operations can be optimized by selecting accounting software suited to the company and ensuring compliance with regulations
Considering their company background, we recognized the importance of selecting accounting software. Initially they only handled simple transactions, but resulted to choose ‘FX4 Cloud(TKC Corp. accounting software)’,considering their future growth and function to import journal entries from Microsoft Excel.
Now their business has become more structured with detailed management required, leading to an increase in the number of accounts and journal entries. However, with a workflow for importing journal entries via Microsoft Excel, we were able to handle the increased volume without any issues. Accounting and tax operations were greatly optimized compared to the time before the software was implemented.
▼After software implementation
Post implementation, support for problem-solving aligned with the company's growth is necessary. Accurately systematized operations gives time for problem solving
After their service launch, departmental profitability management became necessary, but we were able to respond without any issues.
However, each department managed information using their own formats, meaning that this information needed to be converted into journal entry data in the accounting department. This has become a challenge.
During the startup phase, no tax costs incurred, but it was essential to consider the following points for the future:
- The concept of tax effect accounting
- Selection of consumption tax
- Capital structure in anticipation of entity-based standard taxation
New challenges arise as the company continues to change and grow, but systematized operations enables the company to adapt to these challenges as they come. We leverage our past experiences to actively interact with our clients from an early stage, to discuss and create a workflow that suits the company together. This enables us a better understanding of their issues and problems, as a result solve them afterward.
Contact
Click on Inquiries to contact us.
We offer support, practical assistance, and lectures.
*Consultations are free of charge.
Contact
Click on Inquiries to contact us.
We offer support, practical assistance, and lectures.
*Consultations are free of charge.
