Development of IT-enabled business consulting

「In addition, the company will work to expand its service area and offerings by providing a beauty salon management support program for users of its beauty ICT business. The program provides back-office services based on support for preparing salon management plans.」

「The company will continue to expand various services for companies' back-office operations, including efficiency improvements utilizing clients' digital transformation, business succession support, and consulting services as a certified support organization.」

「During the current interim consolidated accounting period, monthly accounting-services revenue increased as demand grew for services related to increasingly complex accounting and payroll processing resulting from the invoice system and flat-rate tax reductions. Sales of personal tax filing support services for sole proprietors also remained strong at 103% of the same period of the previous year. In addition to continuing to support clients, the company is working to expand its services by providing consulting in areas including insurance, real estate transactions and business succession.」

「Amid the introduction of the invoice system from October 2023, sales of personal tax filing support services for sole proprietors performed well during the six months ended 30 September of the current fiscal year, reaching 104.2% of the previous year's level. The company will continue to expand various services for companies' back-office operations, including support for each client in response to amendments to the Electronic Book Preservation Act, business succession support, and consulting services as a certified support organization.」

「The company was certified by the Ministry of Economy, Trade and Industry as an Organization for Supporting Management Innovation, among other functions, and provides consulting services including assistance with preparing management improvement plans and business restructuring support to help clients address their management challenges.」

「These services have further strengthened relationships with existing customers, while alliances with companies under referral-partner agreements, regional financial institutions and professional service firms have led to a stable increase in new business partners. In addition, the company is working to expand its consulting services, including support for each client in preparing for the invoice system beginning in October, business succession support, and consulting as a certified support organization. As a result, engagements for consulting services, including management advice and support for preparing and implementing clients' business plans, are gradually increasing.」

「As a result, engagements involving the preparation and execution support of clients' business plans and management consulting, including advice on their financial condition, have gradually increased.」

「The business services segment for small and medium-sized enterprises became a nationally certified Organization for Supporting Management Innovation, among other functions, after its expertise and practical experience in supporting small and medium-sized enterprises were recognized. The company is working to expand support for preparing and implementing clients' business and improvement plans, as well as management consulting including analysis of financial information.」

「In addition, following its certification as an Organization for Supporting Management Innovation, among other functions, orders for a range of solutions have increased, including the preparation and implementation support of business, improvement and investment plans based on laws and support measures relating to small and medium-sized enterprises, analysis of management conditions including financial results, and financial support including institutional financing. The company is focusing on providing high-value-added services.」

「The business services segment for small and medium-sized enterprises became a nationally certified support organization after its expertise and practical experience in supporting small and medium-sized enterprises were recognized in its designation as an Organization for Supporting Management Innovation, among other functions. This has established a framework for preparing and supporting the implementation of clients' business plans and providing management advice, including advice on financial matters, and the company will work to expand these services going forward.」

「Demand for accounting services has increased as a result of new-user referrals from customers through word of mouth and the promotion of alliances with banks and credit unions, and profit has remained above both the results for the same quarter of the previous fiscal year and the initial forecast. The company has also worked to provide services addressing various support needs among small and medium-sized enterprises arising from measures to counter the impact of COVID-19, strengthening its relationships with existing customers.」

「In the business services segment for small and medium-sized enterprises, the company worked to provide stable accounting services to existing customers, as well as services addressing various support needs among small and medium-sized enterprises arising from measures to counter the impact of COVID-19. As a result of focusing on management improvement solutions, including support to prevent bankruptcy, ensure business continuity and manage cash flow, segment profit increased substantially year on year. As a result, for the nine months ended 31 December of the current fiscal year, revenue was ¥246.679 million, an increase of 0.5% from the same period of the previous fiscal year, and segment profit was ¥20.950 million, an increase of 136.4% from the same period of the previous fiscal year.」

「As a result of focusing on management improvement solutions, including support to prevent bankruptcy, ensure business continuity and manage cash flow, segment profit increased substantially year on year.」

「In the business services segment for small and medium-sized enterprises, the number of new accounting services customers increased through active promotion of alliance businesses with regional banks and credit unions. In addition, the provision of management improvement support and other services to small businesses using government support measures related to COVID-19 resulted in higher revenue and profit than in the same period of the previous year.」

「Against this backdrop, active promotion of alliance businesses with regional banks and credit unions has increased the acquisition of new customers.」

「Meanwhile, the company continued its solutions business to meet needs such as support for applications for COVID-19 response subsidies and cash flow support.」

「Meanwhile, the consulting business for various subsidies and grants has been growing.」

「Meanwhile, the solution business related to risk management and business succession has been growing, and the company is focusing on developing new markets.」

「In the business services segment for small and medium-sized enterprises, the company is preparing to commercialise consulting services for the beauty and care industries in addition to its existing accounting services business for small and medium-sized enterprises.」

「In the business services segment for small and medium-sized enterprises, the company is preparing to commercialise consulting services for beauty salons in addition to its existing accounting services business for small and medium-sized enterprises.」

「In the business services segment for small and medium-sized enterprises, the company relocated the Utsunomiya office of its ICT business for beauty salons to Oyama, Tochigi Prefecture, and began initiatives targeting new customers to promote internal alliances. It also reported an improvement in its earnings profile resulting from measures to address the causes of losses in the staffing services business.」

「In business services for small and medium-sized enterprises, the company expects stable earnings and growth from accounting services such as bookkeeping outsourcing, supported by recurring engagements centered on existing customers and stronger alliances within the group.」

「To offset the decline in sales resulting from the withdrawal from unprofitable businesses, the company focused on developing new businesses, including ICT-enabled business consulting, while also developing personnel to expand the target market for its core accounting services.」

「During the current fiscal year, the company focused on developing new businesses, including IT-enabled business consulting, and invested in personnel development and IT as future sources of revenue.」