Vol.21 日々採算をつくる/ Making a profit every day

Japanese followed by English.

Vol.21 日々採算をつくる





Vol.21 Making a profit every day

Mr. Kazuo Inamori (Founder of Kyocera and KDDI as well as Honorary Chairman of JAL) is saying that management by looking at the monthly balance sheet is not called the real management. It is said that running a business without looking at the numbers every day is the same as operating an airplane without looking at the instruments, saying that you should run a business with a daily profit in mind.

This is a very important teaching, but I don’t think there are many business owners including myself actually do as what Mr. Inamori describes. In fact, if you ask an accountant to make a monthly financial statement, it often takes a long time. Even if the financial statements can be made in-house, it may not be easy to make it quickly depending on the cooperation of each department. There is no doubt that even a small business will have to make a great effort to make daily accounts. Even so, since there are large companies like Kyocera that are able to manage with daily accounting in mind, if you are a small and medium-sized business owner, the timing of the completion of the monthly financial statements should be similar to Kyocera. Since it is difficult to change the accounting policy after becoming a large company, it would be a smart way to deal with it while the company is still small. In other words, small and medium-sized enterprises with a well-established in-house management system in terms of accounting already have the foundation for growing into a large enterprise.

On the other hand, I think that many managers feel extremely difficult when changing from monthly to daily financial statements, so I think it is more realistic to work on weekly financial statements first. I myself thought about various methods for changing from monthly to daily settlement, but each one had good and bad points so that I wasn’t able to choose one. If I had thought about weekly financial statements more seriously, it would have been possible to make it. The lesson I’ve learned is that when you’re trying to reach a big goal, it’s important to take several steps, not one step at a time.

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