Accounting Firm in Japan

Accounting Services for Foreign Companies in Japan

JMC provides a full range of outsourced finance, accounting, bookkeeping, and reporting services in Japan for foreign companies operating there. We adapt our services to the needs of our clients in Japan. JMC’s team is a mix of management consultants, professional accountants, and Japan CPAs that focuses on the needs of our clients and strives to propose an accounting solution best suited to the needs of each client’s finance department.

English Speaking Accountants & Consultants

The team at JMC is made up of English-speaking Japanese accountants, CPAs, and consultants whose first motivation is to find the solution that best answers our client’s needs. When you consult with JMC, engagement typically starts with an analysis of the needs of your finance department. Our consultants find a flexible solution supported by finance experts, reporting specialists, accountants, and bilingual bookkeepers that is flexible and evolves with our client’s needs. Thanks to this approach, JMC can assist companies of all sizes with their accounting needs. JMC can set up a range of services that covers the full financial function of your company or provide support to your existing team. We also provide support for companies in all industries in Japan, from financial services to technology, distribution, and services. Whether you have inventory management requirements, complex sales with multiple clients, or more simply “cost-plus revenues” schemes, our consultants can help you be more successful.

When you outsource your accounting to our team, we can provide any or all of the following services:

Accounting Services In Japan

Monthly Accounting & Bookkeeping Services

Preparation of monthly journal entries for:

  • Revenue / Accounts Receivable
  • Accounts Payable
  • Depreciation and Amortization
  • Accrued Expenses and Tax Provisions
  • Maintenance of computer-based accounting system master data and transaction data.
  • Preparation of Yen general ledger and trial balance.
  • Preparation of the fixed asset registration.

Monthly Reporting Services

Our English-speaking Japanese accountants and CPAs will help you prepare:

  • Yen financial statements according to Japanese GAAP
  • Japanese GAAP statements with conversion to IFRS or US GAAP
  • Reporting package based on the client’s format, custom, IFRS, or US GAAP.

Our bilingual accountants and CPAs will also:

  • Upload reporting packages to integrated financial corporate consolidated systems such as SAP, JD Edwards, Cognos, and Hyperion

Yearly Accounting Closure

Our bilingual Japanese accountants will help you prepare:

  • Accounting according to Japanese GAAP and your accounting standards for year-end closing
  • Balance Sheet
  • Income Statement
  • Data for Japanese tax returns

If you need, our English-speaking Japanese tax accountants can also prepare your tax returns for you.

Related Tax Compliance Services
Deadlines for Tax compliance

What to Know about Accounting in Japan

Businesses that operate in Japan or intend to incorporate there should familiarize themselves with the accounting system and standards recognized by the government. While accounting in Japan works much the same way as it does in other countries, there are some important differences that foreign business owners will need to recognize if they hope to be successful. One example is the difference between certified public accountants and tax accountants. A certified public accountant performs audits under the Certified Public Accountant Law, whereas tax accountants perform accounting services like preparing tax documents and giving advice about taxes under the Certified Tax Accountant Law. Both of these professionals may also provide accounting consulting services for businesses, whether they are foreign or domestic.

Generally Accepted Accounting Principles (GAAP)

The Financial Service Agency and the Accounting Standards Board of Japan issue a set of principles and standards known as J-GAAP. Many businesses in Japan have adopted this standard, but there are three others that a business owner may choose to utilize. IFRS, the standard used primarily in Europe and other areas, is another standard that has seen increased use in recent years and may become the most widely-used standard for bookkeeping in the future. If you are hiring a business accountant, make sure they understand and utilize these standards to ensure you will comply with local regulations. One of the best ways to do that is to hire a resident to be your accountant recruit. Someone who has been immersed in the Japanese accounting system for their entire career will naturally be well-suited for tasks like bookkeeping and other accountant services for your overseas business.

The Fiscal Year

In most western countries, the fiscal year more or less coincides with the calendar year. The Japanese fiscal year is different; it runs from April 1st to March 31st of the following calendar year.

 

At the end of the fiscal year, you will need to submit several documents including your balance sheet, profit and loss statement, statement of changes in net corporate assets, and if necessary, any explanatory notes related to those financial documents. If you are running a Kabushiki Kaisha, or K.K. company, you will be required to give public notice of your balance sheet, as well as your profit and loss statement after the conclusion of your annual shareholder meeting. As a publicly-traded company, you will also need to publish your quarterly and annual securities reports.

Taxation

The type of business you are running will have an impact on the way you are taxed. For example, a K.K. company is taxed more heavily than an overseas representative office. If you want to ensure you are paying the correct amount in taxes, it is a good idea to hire an accounting firm that has experience with your type of business entity. At JMC, we can serve as your accounting company, and we are one of the top consulting firms in the area for foreign businesses looking to incorporate overseas. We can provide you with a financial review in Japan and other services including accounting, payroll, office setup, and so much more.