TKC

Basic Information

Stock Code
9746
Industry
Information and Communications Industry
Category Detail
Systems & Software
Prefecture
Tochigi Prefecture
Establishment Year
October 1966
Listing Year
July 1987
Official Website
https://www.tkc.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Proship, SRA HD, eBASE, Avantage Group, Money Forward, Freee, Oracle Japan, Obic Business Consultants, Human Technologies, PCA, Business Brain Ota Showa, Miroku Information

Overview

TKC is a specialized company founded in 1966 in the information and communications industry, providing information services to accounting firms and local governments, with software for tax accountants as its main product.

Current Situation

TKC recorded consolidated revenue of approximately 75.2 billion yen and net profit of approximately 11.2 billion yen for the fiscal year ending September 2024, maintaining a stable financial base. Its core businesses are accounting and tax software and services for tax accountants and certified public accountants, as well as business support systems for local governments, with expanding market share. It has sales offices and service centers nationwide and leverages its strength in collaboration with the TKC National Association, which includes 11,400 tax accountants and certified public accountants. The company is actively promoting digitalization and cloud services, with its TASK cloud service for local governments adopted by over 1,140 municipalities. During the COVID-19 pandemic, it engaged in medical support and donations for disaster relief and other social contribution activities. Toward 2030, its strategic goals include deepening support for administrative efficiency and expanding cloud services, with a focus on DX and fintech sectors. It is a company continuing to grow backed by solid performance and social credibility.

Trivia

Interesting Facts

  • Specialized company founded in 1966 in Kanuma City, Tochigi Prefecture by a certified public accountant.
  • TKC National Association is Japan's largest group of tax accountants and CPAs with over 14,000 members.
  • Holds over 20% industry share in corporate tax declaration processing for tax accountants.
  • Approximately 1,140 local governments nationwide have adopted TASK cloud service.
  • Donated total of 500 million yen in support funds for COVID-19 countermeasures.
  • Holds API connection track record with over 99% of banks through fintech collaboration.
  • Long-term support for regional sports teams Tochigi SC and ice hockey team.
  • ISO/IEC 20000 certified for international IT service quality management.
  • Active in disaster area support with emergency aid during earthquakes and typhoons.
  • Listed on TSE Second Section in 1987, promoted to First Section in 1996; stable listed company.
  • Corporate philosophy 'Self-benefit and benefiting others' pursues harmony of self and others' interests.
  • Provides highly specialized information services in collaboration with accounting and legal firms.
  • Monthly visiting audits achieve 57.2% profitable company ratio in 2023.
  • Owns publishing subsidiary to strengthen industry support through professional books and training.
  • Headquartered in Utsunomiya City, Tochigi Prefecture, contributing to regional revitalization.

Hidden Connections

  • Ecosystem composed of TKC National Association and related companies promotes standardization and efficiency in tax operations.
  • Strong partnership ties with Daido Life and other financial/insurance-related companies.
  • Business alliances with Sekisui House and Daiwa House Industry, expanding information services to construction industry.
  • Accumulates unique SME management indicator data, contributing to financial institutions' lending decisions.
  • Deep collaboration with legal professionals through legal database provision for law schools.
  • Operates TKC Internet Service Center to ensure business continuity during disasters.
  • Forms strong community partnerships through regional sports team support.
  • Builds diversified business through multiple subsidiaries in IT services, publishing, and support.

Future Outlook

Growth Drivers

  • Expanding needs for digitalization and cloudization of tax and accounting operations
  • Increasing demand for local government administrative efficiency
  • Expanding needs for SME management strengthening support
  • Sophistication of financial services leveraging fintech collaborations
  • Growing importance of systems compliant with legal amendments
  • Acceleration of IT system update cycles through DX promotion
  • Strengthening of professional networks like TKC National Association
  • Popularization of online applications and resident services
  • Institutional reform response through system study groups for new market development
  • Corporate brand strengthening through regional social contributions and collaborations
  • Establishment of stable revenue base through cloud service expansion
  • Operational efficiency and user experience improvements via advanced technology adoption

Strategic Goals

  • Achieve over 70% adoption rate of TASK cloud service among local governments nationwide
  • Expand TKC National Association membership to 15,000 and strengthen collaborations
  • Achieve over 100,000 corporate cloud service users
  • Achieve 10 billion yen annual sales in fintech collaboration services
  • Strengthen IT infrastructure for Environment, Social, and Governance (ESG) compliance
  • Establish advanced management support services utilizing business data
  • Promote sustainable growth through collaboration with regional communities
  • Strengthen diversification through development of new IT services
  • Continuous maintenance of advanced information security systems
  • Enhance corporate competitiveness through talent development and acquisition strategies

Business Segments

Services for Accounting Firms

Overview
Software and services aimed at improving operational efficiency and providing management support for tax accountants and CPAs.
Competitiveness
Customer network and specialized operational expertise through collaboration with TKC National Association
Customers
  • Certified Public Accountants
  • Tax Accountant Offices
  • Accounting Consultants
  • Law Firms
  • Small and Medium Enterprise Owners
  • Audit Firms
Products
  • Financial Accounting Software
  • Tax Declaration Systems
  • Visiting Audit Support Tools
  • Management Analysis Indicators
  • Legal Database

IT Solutions for Local Governments

Overview
Nationwide provision of cloud-based systems supporting tax and resident services.
Competitiveness
Compliance capabilities with system standard specifications based on long years of local government operational expertise
Customers
  • Cities, Wards, Towns, Villages
  • Prefectures
  • Local Administrative Agencies
  • Public Entity Staff
Products
  • Core Business Systems
  • Resident Registry Systems
  • Online Application Services
  • Cloud Administrative Services
  • Local Government Standard Specification Compliance

Financial and Fintech Collaboration Business

Overview
Data integration services compliant with financial administration and system provision in the fintech field.
Competitiveness
API integration track record with over 99% of financial institutions nationwide
Customers
  • Regional Banks
  • Shinkin Banks
  • Financial Institutions
  • Fintech Companies
Products
  • Bank Data API Integration Service
  • Fund Management Cloud
  • Electronic Book Preservation Law Compliant System

Education, Training, and Publishing Business

Overview
Specialized education and publishing in tax and accounting professional skill enhancement and knowledge provision.
Competitiveness
High-specialty content development capabilities and market share
Customers
  • Tax Accountant Training Institutions
  • Accounting Vocational Schools
  • Training Participants
  • Professional Book Subscribers
Products
  • Professional Books and Textbooks
  • Qualification Exam Preparation Courses
  • Business Skills Training Programs

Competitive Advantage

Strengths

  • Advanced tax and accounting expertise from specialized focus
  • Strong customer network with TKC National Association
  • Nationwide capability for local government core operations
  • Stable and high-profit cloud service rollout
  • High-quality IT service operations with ISO certification
  • Active social contributions and regional collaborations
  • Diverse consolidated subsidiaries and group synergies
  • SCG service centers in 56 cities nationwide
  • Abundant legal database holdings
  • Strong financial position and capital strength
  • Competitive edge through financial institution collaborations
  • Reliability from long industry track record
  • Promotion of standardization in local government administrative operations
  • High customer loyalty through ongoing cloud rollout
  • Advanced system development and maintenance capabilities

Competitive Advantages

  • High expertise in IT services specialized for accounting and tax
  • Close, detailed support system via TKC National Association
  • Early implementation of standard-spec compliant cloud services for local governments
  • Accelerated fintech rollout through API integrations with major financial institutions
  • Integrated system development and service provision across multiple fields
  • Broad information service foundation complementing legal fields
  • Rapid customer response enabled by nationwide sales bases
  • Strengthened cloud environment and IT infrastructure through continuous investments
  • Stable revenue base from tax accountant office customers
  • Entry barriers formed by deep operational knowledge fused with technology
  • Reliability and quality assurance via ISO/IEC 20000 certification
  • Business change adaptation through study groups linked with local governments
  • Proven track record in storing and utilizing numerous data-driven management indicators
  • Strong ties with public institutions and public interest foundations
  • Pioneering achievements in integrating ICT with administrative services

Threats

  • Increased software adaptation burden from tax system reforms
  • Intensifying cloud competition and rising new entrants
  • Reduced system investments due to local government fiscal deterioration
  • Complicated operations from frequent legal changes
  • Rising risks of cyberattacks and data breaches
  • Service penetration delays due to varying customer IT literacy
  • Risk of business encroachment by major comprehensive IT vendors
  • Regional demand contraction accompanying population decline
  • Lost opportunities for efficiency improvements from delayed DX promotion
  • Profit margin pressure from price competition
  • Challenges in talent acquisition and development
  • Public budget cuts from unstable social conditions

Innovations

2024: Launch of Local Government Standard Specification Compliant Cloud Service

Overview
Major upgrade to the TASK cloud service that began initial operations in Mooka City, Tochigi Prefecture.
Impact
Promotes efficiency and standardization of local government operations, contributing to operational cost reductions.

2023: Launch of TKC Monthly Indicators (Monthly BAST)

Overview
Began providing timely management indicators for small and medium enterprises to strengthen management support.
Impact
Achieves improved quality of strategic management advice to customers.

2021: Acquisition of ISO/IEC 20000 IT Service Management Certification

Overview
TKC Internet Service Center obtained international certification to enhance reliability.
Impact
Contributes to service quality improvement and enhanced customer trust.

2020: Launch of Online Application Smart System

Overview
Rolled out online procedure systems for local government residents.
Impact
Realizes improved convenience in administrative procedures and promotes digitalization.

2020: Introduction of Bank Data Integration API for Fintech

Overview
Implemented API functionality connectable with over 99% of financial institutions.
Impact
Contributes to fund management automation and significant operational efficiency improvements.

Sustainability

  • DX support supporting development of regional SMEs
  • Promotion of environmental load reduction through local government operational efficiency
  • Social contribution activities including disaster victim support and donations
  • Support for nurturing tax and accounting professionals through education business
  • Promotion of quality management and environmental measures via ISO certification
  • Resource savings and paperless promotion through cloud services
  • Improved fairness and convenience of resident services via ICT utilization
  • Secure financial transaction support using fintech technology