Hi, 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.
If you are unclear about borrowing business funds in Japan, you might find this blog helpful.
Achieving Profitability
The aim is to achieve a net profit after tax, even if it’s just one yen. Banks assess a company’s ability to generate funds based on the sum of operational profits and depreciation expenses. However, it’s advisable to keep the net profit positive if possible. If there is a small deficit, one strategy could be to cut expenses that are less related to the business.
Avoiding Loans to the President
If the financial statements indicate that the company has lent money to its president, banks will view this negatively. It would be better to reduce the amount of loans to the president, perhaps by increasing executive compensation.
Avoidind Disclosing Negative Information
If the details of the financial statement directly indicate debts from a friend, it may negatively impact the bank’s judgment. It’s advisable to reclassify this as a personal loan to the president and reflect this change in the financial statement.
Our accounting firm has been actively assisting foreign business owners in Japan with accounting and tax matters. Please feel free to contact us through the inquiry form.