Seiwajyuku Management Academy's Must-Read Books
Includes 7 Accounting Principles for Management

Kazuo Inamori's remarkable management strategy, which grew a small business with a capital of 30 million won into Kyocera, a global top 100 company with annual sales of 16 trillion won, still serves as an example to countless businessmen.
The most amazing thing about Kazuo Inamori is that he never ran a deficit for 60 years.
Kazuo Inamori's words, "If there is no profit, it is not a business!" are all the more poignant because they are actually virtues he has practiced throughout his career.
What was the secret of Kazuo Inamori, who never ran a deficit despite experiencing countless ups and downs, including the collapse of the bubble economy and the global economic crisis?

The answer lies in Kazuo Inamori's 'Accounting Management'.
In fact, many managers and executives ignore accounting.
When we think of accounting, we often think of it as a kind of 'back-end processing' that involves issuing vouchers for money or products generated during the business process.
Some managers also believe that accounting is not part of the business at all, as they can just hand over the invoices to a tax accountant or accountant and they will create the necessary financial statements.
Some managers even think they can manipulate accounting numbers to suit their circumstances.
However, accounting serves as a 'compass' to achieve goals in corporate management.
So, if there is a problem with accounting, the company's management may be ruined.
This is why accounting is more important than anything else for managers, and it is the part that Kazuo Inamori emphasizes the most.


Recently, not only the self-employed and young entrepreneurs, but also major corporations are suffering from the COVID-19 pandemic.
But if you can see what the numbers on the dashboard mean as clearly as the back of your hand, you don't have to fear any recession.
Through Kazuo Inamori's rebuke and encouragement, who shouts, "How can you manage without knowing accounting?", readers will learn the "principles of accounting" based on his management philosophy of "pursuing what is right as a human being," and further develop the insight to wisely deal with the numerous difficulties encountered in business.

Even if it is a small matter, if you manage it based on principles, you can manage it in a way that is right.
Of course, thinking thoroughly according to principles requires a great deal of effort and pain.
However, if you continue to base your judgment on what is universal and correct, you will be able to make appropriate decisions at every moment.
The same is true in accounting, an important field of management.
Rather than simply applying the mindset or practices that are called "common sense" in accounting, we must first ask ourselves what is essential and then make judgments based on the principles of accounting.
For that reason, I did not blindly believe in the commonly known 'appropriate accounting standards', but rather, from a management perspective, I was particularly conscious of 'why do we do it that way?' and 'what is the essence?'

--- From "Chapter 1, Judge What is Right According to Principles"

All managers pursue profits, but most believe that increasing sales naturally requires increasing expenses.
This is the so-called 'common sense of management'.
However, if you take 'maximizing sales and minimizing expenses' as the starting point of management, common sense changes.
Rather than increasing expenses as sales increase, we think about ways to reduce expenses or maintain them the same as sales increase.
Of course, increasing sales while reducing expenses is not an easy task.
This requires wisdom, creativity, and effort.
Because profit is what happens as a result.
--- From "Chapter 1, Maximize Sales, Minimize Expenses"

If management is like piloting an airplane, accounting data is like the numbers that appear on the cockpit instrument panel.
The instrument panel must provide the captain, who is the manager, with an immediate and accurate view of the aircraft's altitude, speed, attitude, and direction, which change constantly.
Without such an instrument panel, you wouldn't be able to fly the plane properly because you wouldn't know where it is flying or what condition it's in.
Therefore, accounting should not be something that is used to track the results of management.
No matter how accurately you settle accounts, if it's too late, nothing will be resolved.
Accounting data must convey the current business status to managers in a simple and real-time manner.
--- From "Chapter 1: You Can't Become a True Manager Without Knowing Accounting"

Clearly understanding where and how the money you earn exists is fundamental to management.
If you have to look at the financial statements prepared by the accounting manager for several days before you can know where the company's money is, you can't say that you're "running on cash."
In any case, management must deal with the facts in front of us in 'real time'.
Typically, financial statements are painstakingly created by accounting staff over several days.
Among them, various accounting evaluations and judgments in the settlement of accounts have a great impact on profits and numbers.
For example, the value of assets sold can vary significantly depending on the valuation method.
However, you can clearly see where the funds you currently have are at any given moment.
If you can't track your cash reserves in real time, it's difficult to manage your business flexibly in a rapidly changing business environment.

--- From "Chapter 2, Principles of Cash-Based Management"

Many business owners in this world advise borrowing money from banks and using it as seed money to rapidly expand their business.
However, there is a saying that goes, “Banks lend you umbrellas on sunny days, but take them back when it rains.” It may sound cruel, but if a bank cannot run its business after lending money, it is only right to take back the umbrellas it has lent when it rains.
Therefore, managers must make every effort to keep the company dry under any circumstances.
--- From "Chapter 2, Principles of Cash-Based Management"

When a company goes public, it is natural for managers to want to make the company look good to investors.
The desire to maintain a high stock price makes everything look good, including profits.
But if you show off, you will only gain weight and become an unnecessary burden.
Everyone has a desire to look good to others.
However, managers must be wary of such desires.
If the manager is vain, the company will become a sham, full of decorations that only look good on the outside.
If you truly want to build a strong company, you must have a strong will to avoid the temptation for managers to make themselves or the company look better than they are.
--- From "Chapter 2, Principles of Muscular Management"

The essence of amoeba management is that all members of the amoeba have a literal and accurate understanding of their current situation and immediately take the necessary actions to achieve their goals.
To do this, Ameba must set clear goals based on its pre-established annual master plan and monthly 'profitability goals', and must always be fully aware of how its performance compares to these goals.
For this reason, the hourly cost sheet is designed to be a simple format for comparing the current month's goals, master plan, and performance.
Of course, I believe that in management, 'goals' are just as important as performance numbers, or perhaps even more so.
The goal is to express the manager's will and at the same time, it is a blueprint for creating a new business with one's own hands.
In that sense, the goal should never change, and even if the amoeba's fellows or the environment change, it should not give up until the end.
--- From "Chapter 2, Principles of Amoeba Management"

I believe that the role of a manager is to 'breathe life into the company.'
If we compare a company organization to a human body, the managers are the brain cells that serve as the command center.
When managers think more seriously about the company than anyone else, take the lead, and take active action, the company will thrive.
However, if a manager prioritizes his own personal affairs and forgets about the company, the company will lose its vitality.
Therefore, management goals must be created by managers who are more immersed in the company than anyone else, who do not involve personal interests, and who make decisions based on their own will.
(…) The most important thing is how to control people’s hearts.
This isn't just a problem for business executives.
Leaders of any organization, whether school teachers or sports coaches, need to understand the psychology of the people within their organization and how to influence their hearts.

--- From “Chapter 3, Management Goals Are a Tool to Stimulate Employees’ Minds”