Frequently Asked Questions
【Koshida Accounting Firm Column Date:】
Is monthly book closing essential in Japan?
In Japan, companies must close their books at least once a year in order to prepare their annual financial statements and tax returns.
Many small companies mainly focus on the annual closing, while larger companies may also prepare quarterly financial statements. However, monthly, quarterly, or semiannual closings can also be useful for small businesses.
Monthly accounting allows business owners to monitor profits during the year, estimate future taxes, and consider corporate tax planning in Japan before the fiscal year ends. It can also be useful when considering tax reduction or potential tax refunds.