Financial Closing Support (Japan / Overseas)
Overseas Subsidiary Management Support

Overseas Subsidiary
Management Support

Index

Overview Overview

Maximizing results in cross-cultural environments through effective overseas subsidiary management

With the globalization of business through international expansion, M&As, and acquisition of foreign companies, companies are required to develop appropriate management control systems and governance for their overseas subsidiaries with diverse cultures and organizational climates, while maximizing their performance. We are capable of providing three-tiered support from the perspective of the CFO: (i) providing responsive support, (ii) developing organizational structures and business processes, and (iii) strengthening overseas subsidiaries’ management foundations.

Our diverse advisory services

Features Feature

0 1

Providing responsive support

At an overseas subsidiary, the departure of key personnel who managed accounting practices for years, shortages of accounting staff during the parallel reporting period following the adoption of IFRS Accounting Standards, delays in PMI following an M&A, or occurrence of fraud or error may lead to problems such as delays in the subsidiary’s monthly financial closing and the lower accuracy of its financial reporting. We will implement the following urgent support measures until sufficient resources are secured to develop an optimal organizational structure and financial closing process.

Dispatch of staff from our firm or partner accounting firms

Expected duration: within several months

  • We will mainly support the following operations:
  • Support for the preparation of consolidated financial reporting packages,
  • Support for monthly financial closing,
  • Review of monthly financial results,
  • Reporting to the parent on behalf of the subsidiary,
  • Identification and prioritization of issues to be addressed and reporting of identified issues, etc.

0 2

Developing organizational structures and business processes

Delayed identification of problems faced by subsidiaries and inability to collect intended accounting data from subsidiaries often stem from insufficient accounting skills of local accounting staff and communication barriers between the head office and subsidiaries. It is necessary for the local staff to properly understand the purpose and intent of collecting accounting data to be submitted to the head office and other relevant organizations, and for both the head office and local subsidiary staff to mutually identify and bridge the gaps in accounting procedures arising from differences in lobal business practices.
We support the preparation of multilingual instructions for overseas subsidiaries in English, Chinese, and other languages, and accompany the parent’s accounting staff on site visits to assist with the current status assessment and training for local staff to improve their accounting skills, and support the development of communication lines between the head office and overseas subsidiaries. We also facilitate the development of an efficient accounting team structure and the re-engineering of business processes to ensure the continuous collection of accurate accounting data.

Supporting organizational and business process re-engineering by establishing a project team structure

Expected duration: several months to up to six months

  • We will mainly support the following operations:
  • Development of the monthly financial closing process/financial closing acceleration,
  • Preparation of accounting manuals, multilingual communication support,
  • Development of internal controls (compliance with J- SOX),
  • Planning and delivery of accounting training for subsidiary personnel,
  • Continuous review of and advice on financial results,
  • Development of an efficient accounting team structure and establishment and operation of necessary meeting bodies, etc.

03 Strengthening Management Foundations

Strengthening management foundations

Companies are required to work on the following issues if they intend to engage in structural overhaul to solve identified issues, rather than just making short-term improvements in financial and accounting procedures of overseas subsidiaries. Our support goes beyond the scope of finance and accounting and business performance management operations, driving a transformation of management foundations by providing solutions for organizations, personnel affairs, and information systems in cooperation with a partner consulting firm.

As top management’s agreement and commitment are required to achieve reforms in areas shown in the above table, we will drive such reforms forward with the following approach:

Service

IFRS / U.S. GAAP / New Accounting Standards
Financial Closing Support (Japan / Overseas)
IPO (Japan / Overseas)
Fraud Response and Prior Period Restatements
Management Accounting
Financial Advisory