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CFO Insights

Think ahead

CFO Insights is a publication to deliver an easily digestible and regular stream of perspectives on the challenges confronting CFOs. It provides financial updates for Japan from an macro and micro economic perspective and peer CFO's views on various topics.

CFO Insights has been renewed in 2020, an article is posted on the website monthly instead of publishing a quarterly booklet.

CFO Insights | 2021 September

The Partner Management Office (PAMO): Yield Value Beyond Just Cost Saving

As outsourcing continues to be the focus for operational finance process streamline, many CFOs are considering not only saving cost, but also realizing strategic synergies throughout the engagements with their service providers.

To establish and maintain the strategic partnership, it is essential to build a scalable, agile and robust Partner Management Office (“PAMO”). This is a key element of successful BSO (Business Service Optimization) ecosystem to ensure high quality services to clients.

  • Introduction
  • Benefits and Challenges of PAMO
  • Building Blocks
  • Conclusion

To learn more, read the full article now.

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CFO Insights | 2021 August

Tax implications associated with creating a comfortable workspace for remote employees

Many companies are considering how to assist its workforce in creating a comfortable remote workspace in order to maximize employee experience and business efficiencies. This article gives the details whether if allowances for employees such as internet, electricity costs and furniture purchases are treated as a taxable benefit and subject to payroll with holding tax. Depending on the company, remote work allowances and expenses may be consuming a larger portion of a company’s budget. Input from the finance and tax teams will become increasingly important to formulate their company’s remote work financial assistance policies.

  • Overview
  • Financial assistance for remote working
  1. Expenses (Internet, Electricity etc)
  2. Purchases of furniture and equipment
  • Conclusion

To learn more, read the full article now.

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CFO Insights | 2021 July

Japan Economic Outlook -Better performance in the second half-

Our outlook for Japan’s economic growth in the first half of 2021 has been dampened by government regulations due to COVID-19. Meanwhile, In the second half of 2021, a moderate economic recovery is expected due to the vaccine rollout. However, in the longer run, Japan is going to face longer-term challenges such as attracting migrant workers again after this pandemic.

  • Longer-term challenges for consumption
  • Manufacturers remain resilient

To learn more, read the full article now.

*This article was originally published on Deloitte Insights on June 24 , 2021.

CFO Insights | 2021 June

The Accelerated Future of Work: New Insights for CFOs

The COVID-19 pandemic have created such fundamental disruption, and we must shift from surviving to thriving to navigate multiple uncertain futures and continuous disruption in this new world. Meanwhile, the last year of disruption has highlighted that human potential is an organization’s greatest untapped asset. To thrive moving forward in the accelerated future of work requires CFOs and finance leaders to develop strategies that value human capital while reaping the benefits of technology. Core to those strategies will be re-architecting the work of Finance, unleashing workforce ecosystems, and building adaptive flexible workplaces.

  • Technology alone is not enough
  • Developing strategies that value human capital while reaping the benefits of technology
  1. Re-architecting the work of Finance
  2. Unleashing workforce ecosystems
  3. Building adaptative flexible workplaces      
  • Thriving in a world of perpetual disruption

To learn more, read the full article now.

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CFO Insights | 2021 May

Proactive planning for the introduction of the consumption tax qualified invoice system in 2023

The current Japanese consumption tax (“JCT”) system will transition to a new qualified invoicing system beginning 1 October 2023. Some businesses may face situations in which they are no longer able to recover previously recoverable input JCT once the new system goes into effect. To prevent the loss of recoverable input JCT, it is important that businesses be proactive to understand the scope and timing of the planned changes and how those changes may impact their current invoicing arrangements.

  • Overview
  • Invoicing requirements under the current system
  • Invoicing requirements under the qualified invoice system
  • Information required on a tax invoice
  • Potential pitfalls of the transition to the qualified invoice system
  • Conclusion

To learn more, read the full article now.

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CFO Insights | 2021 April

Japan Economic Outlook : A temporary reversal of the recovery

Although Japan's economic recovery in 2020 was relatively strong comparing the United States and European Union, economic activity in 2021 Q1 likely contracted. This is because infections in Japan were on the rise at the beginning of 2021, which prompted the government to issue another state of emergency for 11 prefectures.

In the second half of the year, however, growth will accelerate, thanks to sizable fiscal stimulus at home and abroad. The largest portion of the most recent stimulus package will go toward structural changes aimed at boosting the postpandemic economy. Digitalization and carbon neutrality by 2050 are two of the key policy initiatives.

  • Ample foreign demand
  • Policy response will help growth in H2

To learn more, read the full article now.

CFO Insights | 2021 March

IN-MEMORY COMPUTING: “Promises a massive gain in speed”

In-Memory computing enables Finance organizations to have significantly high access speed to access and analyse high volume of concurrent transactions. It provides automated notifications in real-time to enable better decision-making.

For many future data management needs, in-memory will likely be an indispensable tool. The explosion of information streaming in from the Internet of Things alone could make In-memory a critical capability for companies undergoing digital transformation.

  • What is In-Memory Computing?
  • In Memory Computing in Action
  • “In-Memory computing” in the CFO’s office

To learn more, read the full article now.

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CFO Insights | 2021 February

2021 Japan tax reform proposal

The Japanese government announced its tax reform proposal for 2021 on 10 December 2020 and it includes a number of changes and tax incentives for digital technology to aid economic recovery.

This article provides a high-level summary of some of the proposed changes that would be most applicable to foreign headquartered companies in Japan

  • Overview
  • Digital measures
  • Environmental measures
  • Measures related to financial services
  • Other measures

To learn more, read the full article now.

CFO Insights | 2021 January

Diversity in Workplace

All leading companies have policies for diversity and inclusion. But why be a diverse workplace? What’s in it for the employer and the employees? 

There is a study saying the diversity is a key driver for innovation and results in 19% growth in revenue. The results showsed that these companies were able to develop more relevant products/services for their customers/clients since they are more in tune with their changing needs.

  • Definition
  • Why is diversity important?
  • Bringing the change

To learn more on the diversity and inclusion, read the full article now.

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CFO Insights | 2020 December

Japan Economic Outlook: External demand-led economic growth, but will it last?

Japan has managed to keep infection rates low relative to other large developed economies and foreign demand has pushed Japan’s economy. However, rising infections at home and abroad threaten the ongoing recovery. What impact will the pandemic have on the Japanese economy in the future?

  • The pandemic threatens consumers’ recovery
  • Weak domestic demand weighs on business investment
  • Strong external demand may wane

To learn more on the details, read the full article now.

CFO Insights | 2020 November

Combatting the struggling economic landscape through the effective use of tax losses

One of the key mechanisms for reducing cash tax outflows is the efficient use of existing and projected net operating losses for tax purposes (“NOL”). Utilization of NOL can be achieved through a number of methods including the carryback and carryforward of NOL, offsetting of taxable income and losses within a 100% Japan parented group, or by integrating businesses and utilizing NOL through corporate reorganization.

  • Overview of rules relating to carryforward and utilization of NOL
  • Other restrictions on NOL utilization
  • Options for utilizing NOL

To learn more on  the digital transformation journey, read the full article now.

 

CFO Insights | 2020 October

Emotional fortitude: What CFOs can learn from “undisruptable” CEOs

In today’s environment, executives across the C-suite are under enormous pressure to get it “right.” How can leaders increase their chances of making an optimal decision when all of the alternatives may not be known, when time is not on their side, and when emotions play a central role before, during, and after the decision is made?
In particular, for CFOs looking to playing the key role of trusted advisor to their CEOs, an understanding of the power of emotional fortitude can be uniquely valuable.

  • What is emotional fortitude?
  • Using emotional fortitude to shape the situation
  • Strategies for building emotional “muscle”
  • Embracing emotional fortitude

To learn more on  the digital transformation journey, read the full article now.

 

CFO Insights | 2020 September

MASTER DATA MANAGEMENT - Your Digital Journey Starts here!

The world of business and finance has seen a dramatic shift as organizations scramble to accelerate their digital transformation agenda. The finance leader of the digital age has to be ready to serve as the steward at the helm guiding their organization through the transition to an insights-driven and action-oriented company.

  • Why the digital transformation journey matters even more now?
  • What does it mean to transition to an insight-driven organization?
  • How can organizations embark on this journey?
  • Road to success starts with master data management

To learn more on  the digital transformation journey, read the full article now.

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CFO Insights | 2020 August

Road to a digital future: Considerations for implementing digitalization plans to assist organizations on their way to crisis recovery

With the tax function now playing an essential role in strategic planning, many businesses are encouraging tax functions to accelerate and progress their digital transformation journeys.

  • 3 factors to assist the organization in its crisis recovery
  • 3 Steps to the goal
  • Going paperless in Japan
  • Seal (hanko) issues

To learn more on tax function in DX, read the full article now.

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CFO Insights | 2020 July

Global Economic Brief: Fear, Not Lockdowns, May Drive Economic Activity

The sharp decline in U.S. economic activity in recent months was principally the result of consumer fears about contracting the virus, not government-imposed lockdowns. If the viral outbreak worsens further, economic activity for the third quarter will likely either grow more slowly than expected or not at all.

Moreover, the new, United States Mexico Canada Agreement (USMCA) could hurt the U.S. automotive sector, while major Japanese carmakers reportedly have no intention of shifting production to the U.S., rather, they will either triple wages in Mexico and/or will accept tariffs.

To learn more on global economic outlook, read the full article now.

 

CFO Insights | 2020 June

Mobility “Information and insights on-the-go”

The surge in worldwide spending on mobile devices along with the superior performance by smartphones which includes mobile wallets, E-commerce, biometrics, GPS, and cameras have caused a shift in the way we operate in our personal lives.

Workplaces are also seeing millennials increasing in share as a part of the workforce. This has resulted in more employees expecting the same seamless experience provided the smartphone at the work. Moreover, it has led to a transformation of business models and rise in expectations across the value chain.

To learn more on how mobility in the enterprise affects on their business and leads to the transformation of business models and the value chain, read the full article now.

 

CFO Insights | 2020 May

COVID-19’s impact on transfer pricing in Japan

The COVID-19 (novel coronavirus) pandemic continues to cause serious disruption globally, impacting vital components of the economy, such as production, the supply chain, consumption, and financial markets.

Many industries and business sectors are experiencing serious impact, and global markets are volatile. It is in this context that global multinationals are considering how a downturn may affect their tax and transfer pricing positions.

To learn more on what lies ahead for the Japanese Tax, read the full article now.

 

CFO Insights | 2020 April

Japan: Economic Slowdown

Even before the coronavirus started to disrupt Japanese manufacturing supply chains, Japan’s economy had faltered following the imposition of a higher national sales tax in October 2019.

A combination of soft consumer demand, weak sentiment, the coronavirus outbreak, and global trade troubles has decelerated the economy, and there appears to be little the government can do currently.

To learn more on what lies ahead for the Japanese economy, read the full article now.
 

 

CFO Insights | 2019 Q4

Read the report

Agenda:

Japan Economic Outlook "Consumer spending picked up, but business investment and exports weakened"
Tax News
Cognitive Computing: “Simulation of human thought"
Disruptive M&A: Assessing the Risks and Rewards
Olam International CFO: Business Alignments That Drive Growth
Global Marketing Trends for the C-suite
Concerns Mount Across Regions: Global CFO Signals
An Audit Committee Guide for New CFOs

 

(PDF, 1.9MB)

CFO Insights | 2019 Q3

Agenda:

Japan Economic Outlook - The economy has rebounded but obstacles remain
Tax News
How to get Agile Project Management right
How Agile Internal Audit Can Add Value
Companies Accelerate Digital Innovation Inside and Out
Walmart CFO Brett Biggs: Transformation With Customers at the Core
How CFOs Can Improve Cost Management Outcomes
From Jobs to ‘Superjobs’
CFOs Lend Insights on Diversity and Inclusion

 
 
(PDF, 2.5MB)

CFO Insights | 2019 Q2

Agenda:

Japan Economic Outlook - Slowing economy, declining exports
Accounting News
Tax News
Digital Space  -    “Decrypting the data buzz words”
Strategic Planning: 3 Enduring Trends
Leading Innovation and Disruption: Marc Olin, CFO of EFI
Using Digital Cost Management to Support Growth Strategy
Inclusion a Hallmark of Modern Leadership

 
(PDF, 1.3MB)

CFO Insights | 2019 Q1

Agenda:

Japan Economic Outlook - Insights from CFOs
Accounting News
Tax News
Mobility “Information and insights on-the-go”
Sysco CFO Joel Grade: Strategy, Innovation, and the Finance Mindset
Succession Planning: The Difference Between Good CFOs and Great CFOs
The Rise of the Socially Responsible Business
What It Takes to Lead in Industry 4.0  

(PDF, 861KB)

CFO Insights | 2018 Q4

Deloitte's publication for the foreign CFO community in Japan

Agenda:

Japan Economic Outlook - Insights from CFOs
Accounting News
Tax News
Digital Space
What’s Keeping CFOs Up at Night in 2018?
Chapter II: Preparing for Life After Being CFO
Financial Reporting Implications of Disasters: 2018 Update
Why Cloud Is on the Board’s Agenda

(PDF, 1.3MB)

CFO Insights | 2018 Q2

Deloitte's publication for the foreign CFO community in Japan

Agenda:

Japan Economic Outlook 
Accounting News 
Tax News 
Rise of the Symphonic C-suite 
CXOs Optimistic, Uncertain About Industry 4.0 
Caesars Entertainment CFO Eric Hession on Making a Turnaround 
Leading With Resiliency: Lessons From Seven Leaders

(PDF, 993KB)

CFO Insights | 2018 Q1

Deloitte's publication for the foreign CFO community in Japan

Agenda:

Japan Economic Outlook
Accounting News
Tax News
The 2018 Boardroom Agenda: Confronting Challenges Old and New
The Millennial Mix: What CFOs Should Know
Bolstering Growth as a Business Partner: Diane Morefield, CFO, CyrusOne
Accelerating Performance One Workgroup at a Time

(PDF, 1.5MB)
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