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1. M&A-related services
Mergers and acquisitions are completed upon final agreement between the acquiring and acquired companies at the culmination of a number of steps, from selecting a target company through signing a letter of intent (LOI), conducting due diligence (DD) and valuation to closing the deal. The most important factor in a merger or acquisition is the purchase price, the determination of which is significantly affected by the steps of due diligence and valuation. Crossfields conducts due diligence from the perspective of acquiring companies and provides useful information to assist in determination of the purchase price, fully utilizing the accounting know-how that we have gained through experience on a large number of M&A projects. In addition, following the implementation of a merger or acquisition, we proactively support post-merger integration (PMI), which is a crucial factor in ensuring the success of any M&A activity.
2. Financial management
Recently, enterprises have begun to be exposed to wave of international standardization of accounting, as represented by the International Financial Reporting Standards (IFRS). There is an impression that many enterprises should focus on compilation of accounting information mainly for external reporting purposes and give lower priority to collecting and analyzing accounting information for use in company management. However, it is necessary for enterprises to proactively and efficiently put such information to work in day-to-day management of their businesses in order to move and stay ahead of fierce competition. However, that doesn’t necessarily mean that they need to employ novel methods to that end. It is possible in many cases to obtain various kinds of useful information for business management by applying traditional management accounting methods. Crossfields, as a team of accounting professionals, offers a wide variety of services ranging from formulation of cost and performance management systems through establishment of information systems that enable effective collection and analysis of the information needed by those management systems.
3. Reform of accounting operations
The accounting “Big Bang,” which began in 1999, has required enterprises to adapt to new accounting standards in many instances. In addition, in preparation for mandatory adoption of IFRS, starting in 2015, tasks related to responding to new accounting standards have become almost routine in company accounting departments. These tasks will continue to arise in order for companies to respond to revisions of standards, even after introduction of IFRS. Accounting departments are now required to establish structures that enable swift adaptation to fresh changes in the accounting environment. Crossfields supports projects to reform accounting operations, using a combination of the expert knowledge possessed by our team of accounting professionals with know-how regarding business processes gained through provision of consulting services.
4. Internal control
Three years have passed since the introduction of J-SOX and enterprises have been working on establishing internal controls according to their respective policies. Responses vary by enterprise; some companies have maintained the same systems since the first year of introduction, some have already started to review and redefine key controls, and others have once again acknowledged the importance of general control and are reinforcing it. Whatever the case, tasks related to adapting to J-SOX have continued to impose heavy burdens on enterprises and it is critical that these tasks be handled efficiently. Based on our experience on a number of internal control projects, Crossfields can provide support for all aspects of tasks for adaptation to J-SOX, from formulation and documentation of policies through maintenance and management to improvements, and we can help reduce overall costs of adapting to J-SOX.
5. Preparation for IFRS
Many enterprises have already begun to consider adaptation to IFRS in preparation for its mandatory adoption after 2015. However, they do not appear to have engaged in IFRS-related projects very actively, as some standards have not been completely established yet. Furthermore, regarding the shift from rules-based to principle-based accounting, many still seem to be confused and are seeking alternative criteria for judgment to rules-based accounting using precedent European cases as reference. However, in preparing for the mandatory adoption of IFRS in 2015, enterprises have to calculate financial figures on the IFRS basis as of the beginning balance of balance sheet items for 2014. And, calculation needs to be performed on the IFRS basis starting 2013 for such long-term assets as fixed assets, so there is actually not a lot of time left for transition. Considering, too, that there is a possibility that standards will continue to be revised on an ongoing basis, even after the application of IFRS, it is necessary for enterprises’ accounting and information systems departments to start now on preparing the groundwork for such transformation. Crossfields supports preparation for IFRS by enterprises in all aspects of IFRS application, including design of institutions, operations, and systems.
6. Project management
A U.S. statistical survey conducted ten years ago found that QCD (quality, cost, and delivery) was achieved as planned in an astonishingly low 28% of projects for introduction of main systems. Around the same time, massive system failures occurred in systems unification projects for the merger of city banks in Japan, shaking the IT industry. Now, ten years after that event, the importance of project management has become widely acknowledged both within and outside of the industry. There has been a large increase in the number of PMP (※1) qualification holders and the term PMO (※2) is now also heard frequently. However, even if you understand the importance of project management, it is not easy to cover for lack of experience in and skills for implementation.
Crossfields offers a variety of services for project management, ranging from temporary support to transfer of know-how and skills. Our service offering can be tailored to the specific needs of a particular client.
7. Introduction of accounting systems
Renewal of accounting systems is already underway in a number of enterprises in the context of such keywords as efficiency improvement, adaptation to J-SOX, preparation for convergence, and establishment of consolidated accounting systems. Systems introduction by respective enterprises for the purpose of legal financial accounting already lies in the realm of mature projects. However, in the current environment, there is an urgent need for attention to be paid to establishment of systems in response to growing needs for legal financial accounting and management accounting for entire corporate groups in order to address globalization, fierce competition between multinational enterprises, and IFRS adoption.
Responding to these needs, Crossfields supports establishment of systems for legal financial accounting and management accounting matched with entire enterprise group and core business operations. We offer services in all phases from defining the basic concept to setting up operating systems for legal financial accounting and management accounting, as well as support for promotion of a wide range of projects from Big Bang projects covering core business operation systems to rollouts targeting entire enterprise groups.
8. Information systemization planning
There are three major domains of information systemization planning. The first is a domain to support operations, the second is a domain to support decision-making to respond to changes in the business environment, and the third is a domain to manage and operate information systems for ongoing stable administration.
Enterprises need to adjust to rapidly changing business environments and promote total optimization of operations from both medium- and long-term perspectives as well as from a short-term standpoint. Therefore, it is necessary to formulate and operate information systems that are appropriate as supporting infrastructure for proper business operations.
Crossfields supports formulation of information systemization planning to resolve issues regarding operations and systems and contribute to realization of proper business operations through introducing new systems and reforming legacy systems resulting from business reorganization. In information systemization planning, we clarify the shape of operations after system introduction, system requirements, scope and priority of systemization, scheduling, and development approaches.
9. Training service
As the environment surrounding enterprises continues to undergo dynamic change, it is seen as essential to raise the skill levels of respective individuals in order to ensure the survival and growth of enterprises. In order to strengthen organizational power in all layers of a business organization, from executives through managers to line employees, it is necessary to not only maintain but also improve personnel abilities and quality. Crossfields stands ready to help enterprises with a range of custom training services focusing on the accounting area, which has been our dedicated business domain since establishment of the firm.
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