These indicators are the result of our analysis of the management performance and financial status of SMEs and medium-size companies (with annual revenue of 10 billion yen or below) which have used the TKC Financial System, etc. for two years or longer.
The indicators contain financial statements (balance sheet and profit-and-loss statement) based on the accounting books prepared in the course of field auditing and account closing, each conducted continuously on a monthly basis by TKCNF members. These financial statements were used as-is to file the corporate income tax returns.
The number of companies (with their fiscal years ending between January 2015 and December 2015) recorded in the year 2017 version amounts to 237,748 from 1,046 different industries, accounting for approximately 9% of total companies across Japan. Of all such recorded companies, 52.0% were in black (50.7% in the year 2015 version).
No other management indicators on SMEs in the world have such accuracy and speed that attain such a remarkable reputation from tax authorities, financial institutions, and other similar organizations.
The indicators do not disclose financial statements of individual companies; they aggregate the numbers in the financial statements of at least three companies in a similar industry and size, and report the average figures classified into those of (1) excellent companies, (2) profitable companies, (3) profitable companies near the average, and (4) companies recording losses.
These indicators have been made into a database and are utilized for doing a benchmarking when making a mid-term business plan, as well as for comparisons with competitors in monthly account closings.