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[ The problem ] Some staff members in the accounting section of Company A suddenly resigned, forcing the normally late compilation of monthly balance sheets to be delayed even further. This prevented managers from conducting profit and loss management for each store and crippled the company's ability to compile cash flow statements. Even amid the crisis, store numbers were increasing. The president was still working frantically to expand the business while dealing with these problems. |
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[
Tokyo Sogo Management Advisory's solution ]
The Group Solved the Problem
in this way
Instead of hiring new staff members, the company took
on employees from personnel-outsourcing firms. The Group
analyzed the operation of the accounting division and
enhanced the efficiency of its operations. As such,
the Group provided a simple solution to the problem.
Accounting operations that employees formerly handled
outside of normal working hours were shifted to personnel
dispatched to the company, eliminating the excess workload.
Managers received monthly balance sheets by the fifteenth
day of the next month along with profit and loss statements
from each store.
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[ The problem ] A company with a long history had shifted its business portfolio into a new sector and left its investments unchanged, meaning it was saddled with liabilities along with its assets. Also, it had many subsidiaries, meaning accounting staff spent considerable time each day dealing with transactions between them. Moreover, managers tended to make mistakes in their accounting reports, preventing quick decision making and crippling the management's ability to strategize. |
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[ Tokyo Sogo Management Advisory's solution ] The Group solved the problems in this way.
- We took a fresh look at business lines and other operations at subsidiaries and examined whether these companies should be allowed to survive.
- We analyzed the company's assets, determining which were essential and which were unnecessary.
- We recommended that planned subsidiaries scheduled
for merger be dissolved and nonessential assets
sold while considering potential tax benefits for
the company.
Thanks to our solutions using these methods, the company's
liabilities were reduced to the equivalent of 5% of
annual sales. Instead of having to ask financial institutions
for loans, the company strengthened its financial standing
to the point where banks were approaching it about loans.
The number of affiliated companies has been reduced
to just one, alleviating pressure on the accounting
division. The company has been able to accelerate its
decision-making capabilities by concentrating resources
in store operations and planning.
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