Low-effort Accounting Process in Japan

“Rather than love, than money, than fame, give me truth.” – Henry David Thoreau
「愛よりも、お金よりも、名声よりも、私は真実が欲しい」- ヘンリー・デイヴィッド・ソロー

Hello, my name is Taisei Koshida, and I am a certified public accountant and tax accountant.

I aim to assist non-Japanese business owners who struggle with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.

In the realms of accounting and taxation, there are two main methods: accrual and cash basis.

会計や税金の世界では、発生主義と現金主義という概念があります。

The effort and time required for accounting vary depending on which method you choose. In this discussion, I will explain which method is more suitable for small businesses.

どちらで会計処理をするかによって、会計処理に費やす手間と時間が異なってきます。今回は、中小企業がどちらで処理をすべきかについてお話します。

My hope is that you can manage tax risks effectively while also reducing the effort and time associated with accounting.

あなたが会計に関する手間と時間を減らしつつ、税金のリスクはしっかりコントロールできるようになることを願っています。

１. The Accrual Basis and the Cash Basis 発生主義と現金主義

The accrual basis of accounting records sales and purchases when the right to receive payment or the obligation to pay is established. Conversely, the cash basis records sales and purchases when the actual payment is received or made.

発生主義とは、売上を請求する権利や仕入れなどの支払いの義務が確定した時に、会計上も売上や仕入を計上するという方法です。一方で、現金主義とは、売上金を受け取った時や仕入の代金を支払った時に、売上や仕入を計上するという方法です。

２．Specific Examples of the Accrual Basis 発生主義の具体例

Taking sales as an example, under the accrual basis, sales are recorded when the right to receive payment is established, typically when goods are delivered or services are provided. For a business that sends invoices for sales from the beginning to the end of the month, the sales would be recorded on the date the books are closed at the end of the month.

売上を例にとると、請求権が確定した時点、つまり納品やサービスの提供を終えた時点で売上を計上します。月初から月末までの売上を毎月翌月の上旬のタイミングで顧客に請求書を送っているビジネスだと、締めた月末の日付で売上を計上します。

３．Specific Example of the Cash Basis 現金主義の具体例

Under the cash basis of accounting, sales are recorded at the time of receiving payment. In the previously mentioned example, where invoices are sent in the early part of the following month after the end-of-month closing, it’s common for the payment to be due at the end of the following month. In this scenario, the month in which sales are recorded is one month later compared to the accrual basis.

現金主義の場合は、売上が着金されたタイミングで、会計上売上を計上します。上の例の月末締め翌月上旬請求の場合、多くの場合は翌月末に支払ってもらう契約が一般的です。その場合、売上の計上月は、現金主義は発生主義と比べて1か月遅くなります。

４．Advantages and Disadvantages of Each それぞれのメリットデメリット

The accrual basis provides a more accurate representation of a business’s financial activities. The cash basis, on the other hand, is simpler and less labor-intensive as it involves recording transactions based on cash and bank deposits.

発生主義は、ビジネスをより正確に表しています。現金主義は、現金や預金の情報から売上などを計上するので、シンプルで手間がかからないというメリットがあります。

Conversely, the accrual basis requires more effort and time as it involves recording transactions that extend beyond just cash and deposits, such as monthly sales. Additionally, it necessitates a double effort in recording sales and accounts receivable.

逆に言うと、発生主義は現金や預金以外の情報、月間の売上高など情報が必要になり、さらに、売上の計上と売掛金の回収という2度の手間を要するので、手間や時間などのコストがかかります。

５．What to Look Out for in Taxation 税金で気を付けること

However, even if you maintain monthly records on a cash basis, you must revert to the accrual basis for the year-end financial statements. For instance, a company with its fiscal year ending in March must record March’s accrued sales in the financial statements, even if the payment has not been received by the end of March and therefore was not recorded under the cash basis.

ただし、現金主義で毎月帳簿を作っていたとしても、決算では必ず発生主義に戻す必要があります。例えば、3月決算の会社の場合、3月の発生売上は3月末時点では未着金のため、現金主義では帳簿には計上されていませんが、決算でこれを売上に計上する必要があります。

６.Recommended Accounting Treatment お勧めの会計処理

If precise monthly sales tracking is not essential, it may be more efficient to use cash basis for monthly accounting to reduce effort and time, and switch to accrual basis only for recording unpaid accrued sales when preparing the year-end financial statements.

もしも毎月の売上を正確に把握する必要性がそれほどないのならば、期の途中の会計処理は現金主義で行い手間を減らし、決算の時だけ未着金の発生売上を計上するのが一番効率的です。

Additionally, if you have a consistent payment cycle, such as closing books at the end of the month and receiving payments the following month, you can balance accounting accuracy and bookkeeping simplicity by recording sales in the month prior to receiving payment.

また、月末締め翌月末回収などのように入金サイトが決まっている場合は、着金した月の前の月で売上を計上するという方法を取ることにより、会計の正確性と帳簿作成の簡易性の間を取ることも可能です。

Our accounting and tax office has been actively assisting foreign business owners in Japan with accounting and tax matters. Also, not only in the tax and accounting field, our office can support your business in Japan in the fields of visa, registration, social insurance, and law by networking with specialists. Plus, we have networked with specialists in web marketing, building websites, and business consulting suitable for Japanese customers. All services are provided in English. Please feel free to reach out to us through the inquiry form.