United States

RSM’s FAO team helps U.S. subsidiary establish financial foundation

CASE STUDY  | 

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Overview

NBK America is a subsidiary of NBK, a 450-year-old Japanese company that designs and produces high-quality machine components. The company offers a wide range of miniature couplings, unique special screws for high-tech applications and smart machine elements for many industries, including automation, machinery, medical, self-service, semi-conductor, and networking equipment as a main focus. NBK America was incorporated in 2015 to focus on growth in North America and develop products tailored for the market. 

Background
As a new subsidiary of a foreign company, NBK America required assistance establishing several key business processes to ensure compliance and position the organization for success. The new company required support on tax issues, including assistance in determining which type of entity would result in the most favorable tax implications for the organization.

In addition, with NBK America starting as a small operation, the company needed access to a turnkey accounting and finance infrastructure that would allow it to focus on a successful launch of its core business, without a significant investment of time and money in building out back-office functions. As a new venture, NBK America also needed assistance on basics such as opening bank accounts and starting a general ledger, as well as with fi ding and setting up an account with a payroll service company.

Solution

NBK America chose RSM US LLP to establish and manage its critical financial processes, based on the firm’s success with similar engagements. The RSM finance and accounting outsourcing (FAO) team worked with NBK America’s general manager to understand the organization’s needs and goals, and immediately began establishing a financial foundation for the company, such as bank accounts, the general ledger, as well as the necessary accounting and reporting processes.

RSM also assisted the general manager in developing a budget to submit to the parent company in Japan and implemented streamlined accounting solutions, including Intacct, Bill.com and Tallie, for more efficient transaction processing and visibility into finances.

Using this technology platform, RSM’s FAO team processes and records transactions; reconciles bank accounts, intercompany accounts with the parent company, and other balance sheet accounts; closes the books in a timely and effective fashion each month; and prepares financial statements. This cloud- based solution enables both NBK America’s management and the RSM FAO team to have simultaneous mobile access to information in real time, as well as a centralized, paperless file management system and the capability of designing customized dashboards for reporting.

In addition, the RSM tax team recommended a tax-efficient structure for the organization, and implemented a plan for ongoing tax return preparation and advisory. The process is efficient due to collaboration between the RSM teams, and timely and accurate information provided by the FAO group.

The FAO solution has helped NBK America present a comprehensive view of operations and financial standing to its parent company. Several times throughout the year, executives travel from Japan for updates and strategic planning, based on the current data. Before each visit, RSM provides financial information so representatives can review and better understand the organization’s state of affairs and effectively plan for the future.

With a strong financial structure in place, NBK America is compliant with U.S. generally accepted accounting principles (GAAP), and has flexible finance and accounting systems and processes in place that can effectively scale with future growth.   

Outcomes

The RSM FAO team was instrumental in helping NBK America establish an effective framework for managing finances and operating a successful distribution arm for its Japanese parent company. The company now has full confidence in its finances with a technology-driven solution that integrates applications across all business functions. As NBK America continues to grow, RSM’s flexible and efficient technology solutions will save the company both time and money.

Other benefits of RSM’s service to NBK America include:

  • Financial visibility for NBK America’s parent company
  • Customized dashboards for reporting and analytics
  • Reconciliation of key accounts, including cash and intercompany accounts with the parent company
  • Effective and efficient close processes  

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