Analysis Reveals Low Default Rates for Companies Using TKC Monitoring Information Services
The TKC National Association, led by tax accountant Takashi Sakamoto and based in Shinjuku, Tokyo, focuses on supporting the sustainability and growth of small and medium-sized enterprises (SMEs). A recent analysis, based on data returned by the Japan Finance Corporation, has confirmed that companies utilizing the TKC Monitoring Information Service (MIS) demonstrate remarkably low default rates.
This improvement is largely attributed to the rigorous monthly audits and financial statements that TKC members, consisting of tax accountants and certified public accountants, provide. In essence, these professionals assist their client companies in achieving profitability and sustained operations by fostering reliable financial practices.
The TKC National Association is committed to enhancing reliability in financial statements. They aim to realize accurate financial reporting and tax compliance through the implementation of the written attachment system per Article 33-2 of the Tax Accountant Act. This system allows tax accountants to clarify the specifics of calculations and consultations involved in preparing corporate tax returns, thereby improving the reliability of financial statements.
Another critical element is the Small Business Accounting Guidelines checklist, which assists SMEs in adhering to necessary accounting standards without diverting from tax regulations. First introduced by the Japan Federation of Tax Accountants, this checklist encourages better compliance and transparency in accounting practices.
Moreover, the TKC issues a bookkeeping timeliness certificate based on data collected from monthly audits conducted by members. This ensures the critical alignment of reported data and provides a robust framework for ongoing financial oversight.
The TKC Monitoring Information Service is a cloud-based platform initiated in October 2016. It offers financial institutions real-time, reliable financial information such as monthly financial statements and annual closure reports. Following the completion of the monthly financial report or upon electronic filing with tax authorities, the relevant data is provided at no cost to the financial institutions involved.
The reliability of this data not only encourages lenders to offer support with confidence, but it also minimizes any potential for data manipulation. Currently, over 497 financial institutions, including major banks and credit unions, actively utilize TKC’s services to enhance their lending decisions. Impressively, more than 86% of Japan’s credit guarantee associations also leverage this service, reflecting a strong network of support for SMEs.
Through the TKC Monitoring Information Service, businesses can meet the three requirements outlined in the management guarantee guidelines: separation of individual and corporate relationships, strengthening financial bases, and ensuring accurate assessments of financial situations with timely and accurate disclosures. This ongoing collaboration between TKC and financial institutions allows small businesses to receive essential financial backing, reinforcing the industry's overall stability.
The TKC Monitoring Information Service (M.I.S.) is more than just a service; it's a commitment to fostering healthy financial practices within small and medium enterprises. By offering reliable, digital financial statements, TKC plays a pivotal role in shaping a robust economic landscape for Japan’s SMEs.
Three key instruments enhance the reliability of these financial statements:
1. Written Attachment System: Tax accountants clarify the process underpinning corporate tax returns, ensuring the integrity of financial statements.
2. Checklists for Small Business Accounting: This guideline provides essential frameworks for SMEs, enabling them to follow accounting standards effectively.
3. Timeliness Certification of Bookkeeping: Monthly audits ensure accuracy and timeliness in financial reporting, bolstering trust between businesses and financial institutions.
In conclusion, TKC continues to drive the initiative to strengthen companies through accounting practices, partnering with financial institutions to augment support for small businesses, thus ensuring their growth and sustainability in a competitive market.
This improvement is largely attributed to the rigorous monthly audits and financial statements that TKC members, consisting of tax accountants and certified public accountants, provide. In essence, these professionals assist their client companies in achieving profitability and sustained operations by fostering reliable financial practices.
The TKC National Association is committed to enhancing reliability in financial statements. They aim to realize accurate financial reporting and tax compliance through the implementation of the written attachment system per Article 33-2 of the Tax Accountant Act. This system allows tax accountants to clarify the specifics of calculations and consultations involved in preparing corporate tax returns, thereby improving the reliability of financial statements.
Another critical element is the Small Business Accounting Guidelines checklist, which assists SMEs in adhering to necessary accounting standards without diverting from tax regulations. First introduced by the Japan Federation of Tax Accountants, this checklist encourages better compliance and transparency in accounting practices.
Moreover, the TKC issues a bookkeeping timeliness certificate based on data collected from monthly audits conducted by members. This ensures the critical alignment of reported data and provides a robust framework for ongoing financial oversight.
The TKC Monitoring Information Service is a cloud-based platform initiated in October 2016. It offers financial institutions real-time, reliable financial information such as monthly financial statements and annual closure reports. Following the completion of the monthly financial report or upon electronic filing with tax authorities, the relevant data is provided at no cost to the financial institutions involved.
The reliability of this data not only encourages lenders to offer support with confidence, but it also minimizes any potential for data manipulation. Currently, over 497 financial institutions, including major banks and credit unions, actively utilize TKC’s services to enhance their lending decisions. Impressively, more than 86% of Japan’s credit guarantee associations also leverage this service, reflecting a strong network of support for SMEs.
Through the TKC Monitoring Information Service, businesses can meet the three requirements outlined in the management guarantee guidelines: separation of individual and corporate relationships, strengthening financial bases, and ensuring accurate assessments of financial situations with timely and accurate disclosures. This ongoing collaboration between TKC and financial institutions allows small businesses to receive essential financial backing, reinforcing the industry's overall stability.
What is M.I.S.?
The TKC Monitoring Information Service (M.I.S.) is more than just a service; it's a commitment to fostering healthy financial practices within small and medium enterprises. By offering reliable, digital financial statements, TKC plays a pivotal role in shaping a robust economic landscape for Japan’s SMEs.
Enhancing the Reliability of Financial Statements
Three key instruments enhance the reliability of these financial statements:
1. Written Attachment System: Tax accountants clarify the process underpinning corporate tax returns, ensuring the integrity of financial statements.
2. Checklists for Small Business Accounting: This guideline provides essential frameworks for SMEs, enabling them to follow accounting standards effectively.
3. Timeliness Certification of Bookkeeping: Monthly audits ensure accuracy and timeliness in financial reporting, bolstering trust between businesses and financial institutions.
In conclusion, TKC continues to drive the initiative to strengthen companies through accounting practices, partnering with financial institutions to augment support for small businesses, thus ensuring their growth and sustainability in a competitive market.
Topics Financial Services & Investing）
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