Spike Inc. Launches New ‘Joint Approach’ for Internal Control Systems

Introduction

In April 2023, Tanaka Yasunori Tax Office, headquartered in Shinjuku, Tokyo, transformed into Spike Inc. The company, founded by tax advisor Tanaka Yasunori, aims to provide substantial support for startups and financial advisory services. In line with this transformation, Tanaka Yasunori Tax Office has adopted the name Spike Accounting Firm. A noteworthy development is the launch of the ‘Joint Approach’ service designed to assist companies in establishing robust internal control systems during their IPO preparation phase.

Background and Insights

Tanaka Yasunori has extensive experience as a CFO, having led a business to its successful listing on the Tokyo Stock Exchange Mothers. However, he also witnessed the shortcomings of many companies that faced prolonged IPO preparations, categorized as being in a perpetual “N-2 Phase.” After encounters with numerous companies stuck in this stage, he identified a critical factor contributing to their stagnation: inadequacies in internal control systems. This realization led to the creation of the Joint Approach methodology and action plan, aimed at resolving these fundamental issues.

Challenges in IPO Preparation

The existing practices surrounding IPO preparations often lead to delays. Several challenges have been identified:

- The overwhelming extraction of numerous issues from short reviews by external specialists causing confusion within companies.
- A focus on poorly structured internal regulations and complex accounting processes, while fundamental aspects are neglected.
- Inter-departmental conflicts creating bottlenecks in workflow.
- A high dependency on specific individuals hindering smooth progress toward IPO readiness.

The ‘Joint Approach’ positions itself as a strategic solution to these challenges.

Structure of Joint Approach

The Joint Approach method segments the IPO preparation process into three stages, likened to a vehicle's operational phases: the Ignition Phase, the Idling Phase, and the Cruising Phase. This approach will primarily act during the Ignition and Idling phases.

1. Ignition Phase: This initial stage focuses on establishing a solid internal control framework through the ‘CORE’ action program.
2. Idling Phase: In this stage, the ‘GEAR’ action plan will advance the internal control development.
3. Cruising Phase: Firms will seek support from audit firms and lead securities companies while aiming to finalize their internal controls.

Benefits of Joint Approach

Implementing the Joint Approach cultivates a culture of internal control development across the organization during the initial stages of IPO preparation. Establishing such a framework is not merely about getting ready for an IPO; it is aimed at creating a sustainable organization capable of mutual checks and balances, ensuring that efforts are not short-lived.

About Spike Group

- Company Name: Spike Inc. / Spike Accounting Firm
- Headquarters: 2-11-7 Shinjuku, Shinjuku-ku, Tokyo 5th Floor, 33 Miyatei Building
- CEO: Tanaka Yasunori (Tax Advisor)
- Business Focus: Startup support, tax advisory services
- Website: Spike Tax