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  6. 60 Years of History 1965 to 1984 | 1985 to 2014 | 2015 to 2024
  7. 60 Years of History View by organization | 60th Anniversary Site
  8. 60 Years of History Accounting Dept. | 60th Anniversary Site
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History

60 years of History

View by organization

We will introduce the history, topics, and future prospects
of the 29 departments at the head office and 10 branches nationwide as of fiscal year 2024.*The names of corporations, foundations, incorporated associations, national university corporations, etc. have been omitted.

Accounting Dept.

Accounting Dept.

History of the Department

In April 1965, when our company was first established, the Accounting Department started out with two people in charge of accounting in the General Affairs Department, and this is the origin of the current Accounting Dept. In March 1970, it became independent from the General Affairs Dept. as the Accounting Dept.
The Accounting Dept. is run by two groups: the Settlement Group, which deals with financial accounting, and the Budget and Cost Accounting Group, which deals with management accounting. Both financial accounting and management accounting are essential tools for management, providing data that forms the basis for decision-making and fulfilling their respective purposes and functions.
Since our founding, our mission has been to provide management and all stakeholders with prompt and accurate financial statements, while ensuring strict compliance with the "Basics and Ethics". We believe that this will continue to grow in importance in the future.

System reform and legal amendments implemented over the past 10 years

1
Change in accounting standards

1.Introduction of IFRS
Against the backdrop of the increasing need for globally unified accounting standards due to the globalization of transactions in the capital markets, the International Financial Reporting Standards (IFRS) were established. This has accelerated the movement to align accounting standards with IFRS in each country.
Hitachi, Ltd. decided to adopt IFRS in January 2015, and our company also changed its accounting standards to IFRS in April of the same year to match the Hitachi High-Tech Group.
The aim is to achieve the following two points.
・Promoting standardization through the adoption of IFRS, a global accounting standard
・Cost reduction through the unification and standardization of accounting processes and systems

2
Dealing with system revisions

1.Electronic Bookkeeping Storage Law
In light of the digitization of the economy and society, in order to contribute to improving productivity and the level of bookkeeping through the digitization of accounting work, the rules for preserving electronic transactions were established through tax system reform, and compliance with the Electronic Bookkeeping Preservation Act was made mandatory from January 2022.
2.Invoice System
As a measure to eliminate the problem of "tax-free profits" that had been an issue since the introduction of consumption tax, the consumption tax invoice system (qualified invoice preservation method) was introduced in October 2023. We worked to strengthen our compliance and other checks and balances, as well as ensuring that we were ready for the introduction of the invoice system.

3
Promoting operational efficiency

1.Standardization of fixed costs and simplification of allocation criteria
In the past, the monthly allocation of the original cost of allocated expenses was carried out using the allocation rate determined in the budget, so the allocated expenses of the profit-making departments fluctuated every month, affecting (and being responsible for) the profit and loss.
In the second half of 2017, the allocation criteria were reviewed and the budget fixed amount was changed to the budget fixed rate, which reduced the fluctuation of allocated expenses and eliminated the profit and loss impact (responsibility) of the profit department. In addition, we have clarified the responsibilities of the "management and indirect departments" (cost awareness, operating within the budget), and have simplified the calculation of allocated expenses. At the same time, we have abolished the multi-tiered allocation method in line with the review of the allocation criteria, and have simplified the allocation criteria by consolidating them into four criteria under the new allocation criteria.
2.Introduction of a budget planning system (Jedox)
The system was launched in August 2018, and it was designed to speed up and improve the efficiency of organizational work through real-time aggregation of data for the total of Branch/branch, departments, headquarters, and the entire company, as well as to improve operational efficiency by building functions for automating data import from core systems (SAP/BW) and other systems.

Future Prospects

At present, we are working to improve the efficiency of accounting operations through systemization, shared services, BPO, etc., and in the future, it is expected that the automation of routine tasks such as automatic journalizing, automatic report generation, financial statement checks, and fraud checks will progress further through the use of AI and other technologies.
One of the goals that the Accounting Dept. should aim for is “FP&A” (Financial Planning & Analysis). Based on our knowledge of finance and accounting, we would like to not only make detailed plans and accurately compile results through tasks such as analysis, forecasting, planning and reporting, but also quickly analyze events that have occurred, provide accurate information that is useful for decision-making, and fulfill the role of an accounting strategist who can provide necessary advice.

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