Accountingソフトの選び方と活用

Detailed explanation of Accountingソフトの選び方と活用 based on official information from 法務省・法務局. Company Registration

Published: January 12, 2026

Accounting Requirements for Company Registration in Japan

1. Overview

Accounting is a fundamental legal requirement for all registered companies in Japan and forms the backbone of corporate compliance and financial transparency. Under Japan's Companies Act (Kaisha-hō) and Corporate Tax Act (Hōjinzei-hō), maintaining proper accounting records is mandatory, not optional. The system is designed to ensure accurate reporting of a company's financial position, which is essential for tax assessment, investor relations, and legal accountability. Proper accounting practices enable businesses to track performance, manage cash flow, and fulfill their statutory obligations to shareholders, creditors, and the National Tax Agency (NTA).

2. Applicable Objects & Scenarios

Accounting obligations apply to all business entities registered in Japan, including:

  • Kabushiki Kaisha (KK - Stock Companies)
  • Gōdō Kaisha (GK - Limited Liability Companies)
  • Gōmei Kaisha (General Partnerships)
  • Gōshi Kaisha (Limited Partnerships)
  • Branch Offices of Foreign Companies

The requirement is ongoing and begins from the moment of company incorporation. Key scenarios include:

  • At incorporation: Preparing the initial capital contribution documentation.
  • Ongoing operations: Recording all daily transactions (sales, purchases, expenses).
  • Periodic closing: Preparing financial statements at the end of each accounting period.
  • Tax filing: Calculating taxable income for corporate tax, consumption tax, and other levies.
  • For listed or large companies: Subject to stricter auditing standards under the Financial Instruments and Exchange Act.

3. Core Conclusions

  • Mandatory Compliance: Maintaining legally compliant accounting books and preparing financial statements is a strict legal duty for all companies.
  • Dual Framework: Accounting must satisfy both commercial law requirements under the Companies Act (for reporting to shareholders) and tax law requirements under the Corporate Tax Act (for reporting to tax authorities).
  • Professional Guidance is Highly Recommended: Due to complexity, most companies, especially SMEs and foreign-owned entities, engage a certified tax accountant (zeirishi) or a licensed certified public accountant (kōnin kaikeishi) for bookkeeping and tax filing.
  • Digital Shift: While paper-based ledgers are still permissible, the use of approved accounting software is common and encouraged for efficiency and accuracy.
  • Audit Requirements: All KK companies must have their financial statements audited, but the scope (e.g., full audit vs. simplified audit) depends heavily on company size. Small GKs are often exempt from statutory audits.

4. Procedures & Steps

Establishing and maintaining compliant accounting is a continuous cycle.

Step 1: Preparation & System Setup

  • Determine Accounting Period: Typically aligns with the fiscal year (often April 1 to March 31, but can be set otherwise at incorporation).
  • Choose an Accounting Method: Decide between cash basis or accrual basis accounting. Companies with capital of ¥50 million or more must use the accrual basis.
  • Set Up Accounting Books: Prepare the principal statutory books: the Journal (shiwake-chō) and the General Ledger (moto-chō). Subsidiary ledgers for accounts receivable/payable are also common.
  • Establish Policies: Define policies for depreciation, inventory valuation, and allowance for doubtful debts.
  • Engage Professionals: It is advisable to contract a zeirishi or accounting firm to set up the system correctly from the start.

Step 2: Daily Operations & Recording

  • Document Management: Systematically file all source documents (shōko shorui) such as invoices, receipts, and bank statements.
  • Bookkeeping: Faithfully record all transactions (income, expenses, assets, liabilities, equity) into the accounting journals and ledgers on a regular (daily/monthly) basis.
  • Bank Reconciliation: Regularly reconcile book records with bank statements.

Step 3: Periodic Closing & Reporting

  • Trial Balance: Prepare a trial balance at the end of the accounting period.
  • Prepare Financial Statements: Create the core documents required by the Companies Act:
    • Balance Sheet (taishaku taishō-hyō)
    • Profit and Loss Statement (rieki keisan-sho)
    • Statement of Changes in Net Assets (shihon no hendō-hyō)
    • Supplementary Schedules (fuzoku meisaisho)
  • Prepare Tax Calculations: Adjust the commercial profit per the P&L to calculate taxable income based on tax law rules (e.g., adding back non-deductible expenses).
  • Reporting:
    • To Shareholders: Approve the financial statements at the Annual General Meeting of Shareholders.
    • To Tax Authorities: File the final Corporate Tax Return along with the attached financial statements with the tax office. Deadlines are generally within two months after the fiscal year-end.
    • To Legal Affairs Bureau: Companies must attach a copy of their balance sheet to their annual kihon shōhyō (registration update) submission.

5. Frequently Asked Questions (FAQ)

Q1: Can I do my own company accounting in Japan? A: Legally, yes. However, the Japanese accounting and tax system is highly complex with specific rules and deadlines. Errors can lead to penalties, additional tax, and compliance issues. Most business owners use a qualified tax accountant (zeirishi).

Q2: What is the difference between a zeirishi and a kōnin kaikeishi? A: A Certified Public Tax Accountant (zeirishi) specializes in tax accounting, filing tax returns, and providing tax advice. A Certified Public Accountant (kōnin kaikeishi) focuses on auditing, financial statement assurance, and broader business consulting. For daily bookkeeping and tax filing, a zeirishi is the standard choice for SMEs.

Q3: What are the penalties for improper accounting or late filing? A: Penalties can include substantial late payment fees (approx. 10-15% of tax due) and heavy negligence penalties (up to 40% of underpaid tax). Persistent or fraudulent non-compliance can lead to criminal charges.

Q4: Is English-language accounting software acceptable? A: For internal management, yes. However, for official submissions to Japanese authorities, all documentation must be in Japanese. It is crucial to ensure that data from English software can be accurately converted into the required Japanese-format financial statements.

Q5: How long must I keep accounting records? A: The Companies Act requires that accounting books and important documents be preserved for 10 years. The Tax Act generally requires keeping books and documents supporting tax returns for 7 years (5 years for consumption tax records for certain taxpayers). Please verify specific retention periods with your tax advisor.

6. Risks & Compliance

  • Disclaimer: This article provides general guidance and is not a substitute for professional accounting, tax, or legal advice. Regulations change frequently.
  • Primary Risk: The largest risk is non-compliance with tax laws, resulting in back taxes, heavy penalties, and interest. This can severely impact cash flow and business viability.
  • Audit Risk: Inaccurate records increase the likelihood of a tax audit, which is time-consuming and costly.
  • Legal Entity Risk: Directors (torishimariyaku) can be held personally liable for gross negligence in accounting duties that cause damage to the company or creditors.
  • Key Compliance Note: Be aware of the critical distinction between "book profit" (financial accounting) and "taxable income" (tax accounting). Many expenses recorded in books may be partially or fully non-deductible for tax purposes, requiring careful adjustment.

7. References & Sources

8. Related Topics

  • Corporate Taxation in Japan: Details on corporate inhabitant tax, enterprise tax, and consumption tax.
  • Company Registration Process in Japan: Steps to incorporate a KK or GK.
  • Employer Registration & Labor Insurance: Requirements after hiring employees.
  • Annual Reporting (Kihon Shōhyō) for Companies: The yearly update submitted to the Legal Affairs Bureau.
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