Enhancing the Creditworthiness and Growth of Logistics Companies Through Tax Advisor Utilization

On October 9, 2023, Funai Consulting Logistics Co., Ltd., one of Japan's leading logistics consulting firms headquartered in Chuo-ku, Tokyo, hosted an online seminar aimed at business leaders in the transportation and logistics sectors. The topic centered on how logistics companies can improve their creditworthiness and achieve sustainable growth by effectively utilizing tax advisors.

Seminar Overview

The seminar attracted a diverse audience, particularly targeting business managers who:

- Are uncertain if their current tax advisor is meeting their needs.
- Wish to learn about the proposals that successful companies are receiving from their tax advisors.
- Want to understand the advantages of having a capable tax advisor, particularly in relation to financial institution strategies, accounting improvement, and financial closing preparations.
- Aim to streamline their accounting and labor operations for better management.
- Seek to enhance their fundraising capabilities and strengthen employee retention through strategic investments.

Key Discussion Points

Importance of Tax Advisors for Growth

The first point addressed was the crucial role tax advisors play in the growth of logistics companies. Many firms in the industry face significant challenges such as workforce shortages, soaring costs, and delays in digital transformation. Addressing these issues with the right tax advisory support can make a substantial difference in organizational efficiency and financial stability.

Case Study: Rapid Credit Improvement

One compelling success story featured during the seminar was that of Yama Shou Unyu Co., Ltd. from Gifu Prefecture, which achieved a remarkable $5 million in financing in just one year after changing their tax advisors. Initially concerned about their prior tax advisory experience, they decided to make a complete switch to a new tax and labor management firm, resulting in several key improvements:
1. Transitioning from manual accounting processes to efficient monthly financial statements.
2. Digitizing attendance tracking to streamline the aggregation of overtime hours and payroll distribution, enhancing employee satisfaction.
3. Establishing a one-stop consultation system for subsidies, grants, and financial closing strategies.

These changes led to enhanced evaluations from financial institutions and a significant increase in funding.

Comprehensive Support from Tax Advisors & Labor Consultants

The seminar also provided an in-depth explanation of the essential services logistics companies should seek from tax advisors and labor consultants, including:

- Building an efficient accounting and labor management system devoid of redundancies through digitalization and outsourcing.
- Timely preparation of monthly financial statements for quicker decision-making.
- Effective cash flow management with a focus on growth.
- Proper information disclosure to financial institutions.

Comparative Analysis of Tax Advisory Services

Specialized consultants from Funai Consulting Logistics helped attendees navigate the complexities of comparing tax advisory and labor services. It is a known fact that the level of service and pricing can vary widely among firms, often making it challenging for business leaders to identify the right fit for their specific needs. Thus, the seminar offered insights on how to distinguish between competent tax advisors and labor consultants, with a focus on logistics industry requirements.

About Funai Consulting Logistics

Funai Consulting Logistics Co., Ltd. is committed to its mission of creating advanced model companies in logistics. Their tailored on-site consulting services facilitate operational upgrades for medium and small logistics firms, focusing on aspects such as securing new clients, rate negotiations, driver recruitment, and establishing human resources and compensation frameworks. The company also manages the Logistics Provider Management Study Group, which is the largest platform for medium and small logistics business executives in Japan, gathering over 350 members nationwide.