Japan Accounting & Bookkeeping
Bilingual Accounting and
Bookkeeping in Japan
Reliable Japan accounting with the reporting, systems flexibility and communication your overseas headquarters needs.
From bookkeeping and monthly closing to IFRS or US GAAP reporting, accounts payable, treasury, cash-flow management and outsourced Controller/CFO support, Kreston ProWorks provides a scalable bilingual finance function for international businesses in Japan.
Accurate Books Are Only the Starting Point
Foreign-owned companies in Japan need more than someone who can record transactions.
They need a finance function that works correctly in Japan while fitting into the accounting, reporting and consolidation environment of the international group.
Our role is to bridge your Japan operation with the finance requirements of your headquarters.
That means:
- Accurate and timely bookkeeping
- Disciplined monthly or quarterly closing
- English-language management reporting
- Group reporting under the required accounting standard
- Japanese statutory and tax compliance
- Accounts payable and payment control
- Cash-flow and treasury support
- Coordination with payroll and tax
- Flexible systems and data
- Clear communication with overseas finance teams
Does This Sound Familiar?
Your Japan books are technically correct - but difficult for headquarters to use
The local chart of accounts or reporting format does not match the group’s consolidation requirements.
Your group reports under IFRS or US GAAP
Japan reporting creates unnecessary conversion work every month or quarter before consolidation can begin.
Closing takes too long
Supporting documents arrive late, unresolved questions accumulate and issues are discovered too close to the reporting deadline.
Your global ERP is not designed around Japan
Headquarters wants to continue using its existing system while Japan must still comply with local accounting, tax and record-retention requirements.
You have too many providers
Accounting, tax, payroll and payments are split among different firms, leaving headquarters to coordinate the entire process.
You need finance capability without building a large local department
You may require experienced accountants, Controller support or CFO-level oversight without hiring every function internally.
Accounting Designed Around Your Group - Not Only Japan
One of the most important choices is which accounting standard should drive your recurring books and reporting.
For many international groups, Japanese GAAP is not the most useful basis for monthly management and consolidation reporting.
Throughout the year
IFRS, US GAAP or Group GAAP
Where appropriate, we can maintain or prepare the books and reporting package on a monthly or quarterly basis under IFRS, US GAAP or another agreed group accounting framework.
This allows the Japan entity to feed more directly into:
- Group consolidation
- Management reporting
- Regional reporting
- Forecasting
- Intercompany reconciliation
- Audit preparation
without requiring headquarters to convert Japanese accounts every reporting period.
At year end
Japan Compliance Conversion
For many clients using this approach, we then perform the required Japan-basis conversion or statutory/tax adjustments at year end so that the information required for Japanese tax reporting and compliance can be prepared from the same underlying accounting records.
We already use this model for a number of international clients.
This gives the group the best of both worlds:
One Japan Ledger. Reporting That Works for Headquarters.
Japan does not need to become an accounting island disconnected from the rest of your organization.
Monthly Bookkeeping & Closing
We manage the recurring accounting cycle according to the agreed timetable, including:
- Transaction processing
- Bookkeeping
- Reconciliations
- Accruals
- Month-end close
- Balance-sheet review
- Management accounts
- Annual closing support
The objective is not simply to enter transactions. It is to maintain books that are:
- Accurate
- Explainable
- Reviewable
- Reportable
- Compliant
Management & Group Reporting
Reporting can be tailored to the requirements of the parent company. This can include:
For management
Management reporting
- Monthly or quarterly management accounts
- Balance sheet and P&L
- Variance analysis
- Cash-flow reporting
- Budgets and forecasts
For the group
Group reporting
- Group consolidation packages
- IFRS reporting
- US GAAP reporting
- Intercompany schedules
In your format
Mappings and templates
- Account mappings
- Client-specific templates
- Accounting-policy adjustments
System Agnostic by Design
International businesses should not have to replace a global finance platform simply because they establish a subsidiary in Japan.
Kreston ProWorks is system agnostic. We work with major global and Japanese accounting and ERP systems either through client-provided licenses and access, or through our own systems and licenses where appropriate.
We regularly adapt our operating model to the systems already being used by the client's finance organization.
We Work With the Systems You Already Use
Our team has experience working with international and Japanese finance environments including systems such as:
Global ERP
Cloud accounting
Japanese cloud accounting
... and other client ERP environments
The platform is not the service.
The service is making the accounting process work reliably across Japan and your international organization.
Global Systems. Japanese Compliance.
There is no single platform we require every foreign client to adopt.
Instead, we determine how the client's existing systems can be used while maintaining the accounting records, supporting documentation and other information required for Japanese compliance.
Your global system
The client's foreign ERP or accounting platformOur approach can include
- Group-chart-of-accounts mapping
- Japan-specific account structures
- Required tax data
- Supporting-document controls
- Electronic record retention procedures
- Data extraction and reconciliation
- Japan-compliant reporting
- Conversion or transfer of accounting information into a Japan-compatible accounting environment where required for annual tax and statutory processes
Japanese compliance
Accounting records, supporting documentation and tax information Japan requiresThe objective is to preserve the efficiency of the client's global system without creating unnecessary Japanese compliance risk.
Accounts Payable, Treasury and Payments
For many foreign subsidiaries, bookkeeping represents only one part of the finance process. Someone must also manage what needs to be paid, when, by whom and with what supporting documentation.
Depending on the agreed scope, we can support:
One Integrated Monthly Finance Process
Collect
Invoices, expenses, bank information, payroll results and other agreed inputs.
Process
Record and classify transactions according to the agreed accounting framework.
Reconcile
Bank, balance-sheet and other accounts are reconciled and exceptions investigated.
Close
Monthly or quarterly closing procedures and accounting adjustments are completed.
Review
The accounting team reviews results and resolves outstanding issues.
Report
Management accounts, IFRS/US GAAP reporting, group packages and other required outputs are provided.
Support
Your Japan management and overseas finance teams communicate directly with our bilingual team when explanations or additional information are needed.
Accounting That Connects With Payroll, Tax and Corporate Administration
Finance issues rarely exist in isolation.
Payroll creates accounting entries.
Employee changes affect payroll and accounting.
Tax decisions affect the books.
Payments affect cash flow.
Corporate activity can create accounting and tax consequences.
Kreston ProWorks can coordinate these requirements across one professional-services environment.
| Requirement | Kreston ProWorks support |
|---|---|
| Accounting | Bookkeeping and monthly/annual close |
| Group reporting | IFRS, US GAAP and management reporting |
| Payroll | Payroll processing and accounting outputs |
| Tax | Corporate, consumption and withholding-tax support |
| Treasury | Payments and cash management |
| Corporate | Entity and corporate-secretarial administration |
| HR | Employee-related finance coordination |
| Advisory | Processes, policies, controls and systems |
| Finance leadership | Outsourced Controller / CFO |
Outsourced Controller and CFO Support
Sometimes the problem is not bookkeeping capacity.
It is the absence of experienced finance leadership in Japan.
We can supplement the accounting function with Controller or CFO-level support.
- Monthly financial review
- Management reporting
- Group reporting
- Budgeting and forecasting
- Cash-flow oversight
- Finance policies
- Internal controls
- Process improvement
- ERP projects
- Audit coordination
- Temporary finance leadership
- Support during growth or staffing transitions
Accounting Process & Finance Function Improvement
We also help improve how the finance function works.
Accounting Process Optimization
Review closing processes, responsibilities, bottlenecks, manual work and duplicated effort.
Accounting Policies & SOPs
Develop or update policies, process documentation, closing instructions and operating procedures.
Internal Controls
Review approvals, segregation of duties and financial controls.
Reporting Transformation
Improve management reporting, timetables and consolidation processes.
Systems & Data
Review how finance systems and data flows can better support the Japan operation and headquarters.
We Are Part of Your Team - and Part of Your P&L
Outsourcing only works when the economics work for both sides.
We understand that our fees are part of your operating cost.
Our objective is therefore to design a service model that balances:
- Deliverables
- Quality
- Control
- Continuity
- Cost
For your P&L
We do not believe that the most expensive operating model is automatically the best one.
Where processes can be standardized, automated or handled more efficiently, we look for those efficiencies. Where experienced professional involvement is required, we make sure the appropriate resources are available.
For continuity
At the same time, the service must be commercially sustainable for Kreston ProWorks so that we can maintain the people, technology, review procedures and continuity required to deliver the agreed service year after year.
The right balance for both sides.
Accounting Support That Scales With Your Japan Business
Build the accounting, reporting and control environment correctly from the beginning.
Outsource most or all of the Japan finance function.
Supplement internal finance teams with accounting, Controller, treasury, reporting or project support.
Also
SPCs and Investment Structures
Accounting and administration for project, investment and asset-holding entities. SPC services
Also
Temporary or Transitional Requirements
Additional finance capacity during ERP implementations, restructurings, acquisitions, vacancies or rapid growth.
Why International Companies Choose Kreston ProWorks
Fully Bilingual
Direct communication with Japanese operations and overseas finance teams.
Group-Reporting Focused
IFRS, US GAAP and other group reporting can be incorporated into the recurring accounting model.
System Agnostic
We adapt to the client's appropriate finance environment rather than forcing every client onto one platform.
Japan Compliance
Global processes are designed so that Japan accounting, tax and record-keeping requirements remain properly addressed.
Integrated Finance Support
Accounting, payroll, tax, treasury and advisory can be coordinated together.
Cost Conscious
We recognize that our services affect your P&L and design scope with both performance and economics in mind.
Long-Term Continuity
The operating model must also allow us to retain the people, systems and controls needed to deliver consistently.
Frequently Asked Questions About Japan Accounting
Can you maintain our Japan accounts under IFRS or US GAAP?
Yes. Depending on the client's requirements, recurring monthly or quarterly books and reporting can be prepared under IFRS, US GAAP or another agreed group framework, with Japanese statutory/tax adjustments handled separately as required.
Does Japan therefore need two complete sets of books?
Not necessarily. The operating model can often be structured around one underlying data set, appropriate mappings and adjustments rather than maintaining two completely independent accounting environments.
Can we continue using our global ERP?
In many cases, yes. We review the system, data availability and Japanese compliance requirements and design the accounting process around them.
Do we have to use your accounting software?
No. We are system agnostic.
How do you deal with Japanese electronic-record requirements?
We design the document, data-retention and accounting process so that relevant Japanese requirements can be met. Where a global system alone does not provide an appropriate Japan compliance environment, supplementary processes or Japan-system conversion can be implemented.
Can you provide reports in our own format?
Yes. Group reporting packages, account mappings and bespoke reporting formats can be agreed as part of implementation.
Can you handle AP and payments?
Yes. Accounts payable, treasury and payment support can be included depending on the required banking and authorization model.
Can you work alongside our internal finance staff?
Yes. Many engagements combine internal client resources with selected outsourced accounting, reporting, Controller, treasury or specialist support.
Memberships and Credibility
Make Your Japan Finance Function Work Locally - and Internationally
Whether you are establishing your first Japan accounting process, changing providers or improving an established finance function, we can design the accounting model around your organization.
Japan compliance. Global reporting. Flexible systems. Bilingual support.