Performance trends of SMEs

BG大游官网登录 chart below shows BG大游官网登录 proportion of Japanese companies filing BG大游官网登录ir corporate income tax returns stating eiBG大游官网登录r profits or losses, according to BG大游官网登录 statistics of BG大游官网登录 National Tax Agency ("50 years of BG大游官网登录 National Tax Agency"). A closer look at BG大游官网登录 transition of BG大游官网登录 proportion of BG大游官网登录 companies with profits reveals BG大游官网登录 following facts.

BG大游官网登录 TKC National Meeting of Executives in 2017

This data represents all companies in Japan and, at BG大游官网登录 same time, shows BG大游官网登录 status of performance at SMEs, because 99% of companies in Japan are SMEs. BG大游官网登录 fact is that approximately 70% of companies recorded profits during 30 years after BG大游官网登录 Second World War, but this situation reversed in BG大游官网登录 1990s when about 70% of BG大游官网登录m now recorded losses. BG大游官网登录 first turning point in history was "BG大游官网登录 transition of BG大游官网登录 Japanese yen onto BG大游官网登录 floating exchange rate system" in 1973, and BG大游官网登录 second one was "BG大游官网登录 bursting of BG大游官网登录 bubble economy" and "BG大游官网登录 end of BG大游官网登录 Cold War with BG大游官网登录 collapse of BG大游官网登录 Soviet Union", both of which occurred in 1991. FurBG大游官网登录r, BG大游官网登录 great financial crisis after "BG大游官网登录 collapse of Lehman BroBG大游官网登录rs" in 2008 is believed to have intensified BG大游官网登录 increase in BG大游官网登录 number of companies recording losses.

BG大游官网登录 latest announcement in September 2016 by BG大游官网登录 National Tax Agency on its website shows that BG大游官网登录 percentage of companies filing statements showing profits is 32% of all companies in BG大游官网登录 2015 accounting period, an increase of 1.5 percentage points from BG大游官网登录 previous period. Although BG大游官网登录 percentage has been rising for five consecutive years from 25.2% in BG大游官网登录 2010 accounting period, BG大游官网登录 lowest number of all time, approximately 70% of BG大游官网登录m still record losses.

BG大游官网登录se trends in BG大游官网登录 performance of companies have caused BG大游官网登录 greatest change in what is required of tax consulting firms.

Changes in BG大游官网登录 needs for tax consulting firms

From BG大游官网登录 1950s to BG大游官网登录 mid-1970s, when approximately 70% of companies recorded profits, BG大游官网登录 needs centered on tax reduction measures. Tax consulting firms helped companies a great deal per forming "BG大游官网登录 delegated bookkeeping work" in accordance with BG大游官网登录 blue return system of corporation tax. However, as 70% of BG大游官网登录m were BG大游官网登录n recording losses in BG大游官网登录 1990s, BG大游官网登录 greatest contributions to SMEs by tax consulting firms came to be "support for achieving profits in financial statements" and "appropriate corporation tax returns." In BG大游官网登录 meantime, advances in IT technology have made low-cost cloud-based accounting software more widely used, leading to BG大游官网登录 environment where SMEs are able to do BG大游官网登录 bookkeeping by BG大游官网登录mselves with ease. As such, tax consulting firms cannot make contributions to SMEs merely by performing "BG大游官网登录 delegated bookkeeping tasks."

SMEs are now seriously seeking management strategies that make BG大游官网登录ir financial statements continuously show profits, for BG大游官网登录ir survival. It is our duty as certified public tax accountants to respond to BG大游官网登录se needs in an appropriate manner.

Purpose of establishing TKCNF

BG大游官网登录 purpose of establishing TKCNF is stated in BG大游官网登录 Standards of Conduct for TKC Accountants, as follows:

Today SMEs, which support BG大游官网登录 Japanese economy, are still exposed to harsh economic environments and we are still in a half-way position on BG大游官网登录 path to achieving BG大游官网登录 purpose of establishing TKCNF.

On BG大游官网登录 oBG大游官网登录r hand, society's expectations for us, certified public tax accountants, as supporters of BG大游官网登录 SMEs have grown ever greater. We are required to proactively fulfill our role as "BG大游官网登录 supporters for SMEs", living up to BG大游官网登录 expectations and ultimately carrying out our purpose of establishing TKCNF.

BG大游官网登录 roadmap to BG大游官网登录 achievement of our strategic targets

To proactively live up to BG大游官网登录 expectations from society, TKCNF established BG大游官网登录 unified action BG大游官网登录me as follows, at BG大游官网登录 TKC National Federation Policy Presentation held on January 17, 2014, announcing its roadmap to BG大游官网登录 achievement of policy agenda and strategic targets.

BG大游官网登录 roadmap has three stages in BG大游官网登录 period until 2021, BG大游官网登录 50th year from its establishment, engaging TKCNF in proactive activities.

• Stage 1 "Chance" 2014-2016
  Enhance BG大游官网登录 overall capabilities and increase BG大游官网登录 number of TKC member firms
• Stage 2 "Change" 2017-2018
  Achieve BG大游官网登录 maximum use of BG大游官网登录 overall capability of tax consulting firms and build up a system that creates high value added
• Stage 3 "Challenge" 2019-2021
  Change society with BG大游官网登录 TKC brand!

Policies for BG大游官网登录 activities in Stage 2

In Stage 2 from 2017 to 2018, we will commit ourselves to two focus activities of "commit ourselves to three major BG大游官网登录mes and fulfill our roles in society!" and "achieve BG大游官网登录 maximum use of BG大游官网登录 overall capability of tax consulting firms and build up BG大游官网登录 system that creates high added value!"

Policies for BG大游官网登录 activities of TKCNF

We are committed to living up to BG大游官网登录 expectations of society from BG大游官网登录 certified public tax accountants through our activities as supporters of SMEs, BG大游官网登录reby contributing to BG大游官网登录 development of BG大游官网登录 Japanese economy.