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Kyocera: Accounting Principles Cheat Sheet by

Principles behind Kyocera Accounting
principles     accounting     kyocera


Accounting represents "the core of manage­men­t" in modern times. Being aware of the true condition of the company is essential for the long-term develo­pment of the corpor­ation.

To undertake management in earnest, all management figures must show the true operating conditions of the company without any manipu­lation. All items and numbers in the income statement and balance sheet must be perfect, reflecting an absolutely accurate view of the company for everyone to see.
Credit: (From the public­ation, Kazuo Inamori's Pragmatic Studies: Management and Accoun­ting)

The Seven Accounting Principles

1. Principle of Cash-Basis Manage­ment
Cash-Basis Management describes a management style based on "­sub­sta­nce­," which focuses on the flow of cash. In other words, my first principle of accounting is that we should strive to manage business according to a cash basis.

2. Principle of One-to-One Corres­pon­dence
One-to-One Corres­pon­dence needs to be followed strictly, not just as an accounting discip­line, but also as a way to regulate enterp­rises and the people who work within them. Through its applic­ation, we can achieve "­tra­nsp­arent manage­men­t" that is free from any unfair­ness, either internal or external.

3. Principle of Muscular Manage­ment
A corpor­ation must contin­uously develop itself. If we were to compare a corpor­ation to a human body, our company would strive to maintain a lean and athletic body with excellent blood circul­ation throug­hout. In other words, managers should aim to create a lean and muscular company.

4. Principle of Perfec­tio­nism
"­Per­fec­tio­nis­m" refers to the basic posture of management that aims at perfection in every detail of our business, without any ambiguity or compromise whatso­ever.



5. Principle of Double­-Ch­eck
"­Dou­ble­-Ch­eck­" means a mechanism that sustains the soundness of personnel and organi­zations beyond accounting functions and reaches across many aspects of a business.

6. Principle of Profit­ability Improv­ement
A corpor­ation must see improved profit­ability as its most important mission. To improve profit­abi­lity, it is not only important to increase sales, but also to simult­ane­ously raise the added value of the company’s products and services. To raise the added value, we must create products and services that have higher market value using fewer resources. Improving profit­ability is the prereq­uisite that enables us to raise employees’ standards of living and contribute to the advanc­ement of society through corporate activity.

7. Principle of Transp­arent Manage­ment
It was necessary for a small company like Kyocera to have a strong bond between management and employees in order for it to survive in a highly compet­itive world. I realized then the importance of openly disclosing the true condition of our company to employees in order to build a strong trust between us. Such was the thinking that led me to build our style of transp­arent manage­ment, sharing the company’s true financial condition with all employees.

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