Outsourcing

The main components of accounting outsourcing include bank account management, bookkeeping and the creation of trial balances, and the preparation of monthly financial report packages.

Banking Agent · Japan

SANSEI acts as agent overseeing transfers from the client’s Japan bank account for staff salaries, staff expense report reimbursements, and office-related expenses. In most cases, we utilize the Internet banking services offered by all Japanese banks.

Corporate Seal Management

We maintain custody of the client company seal, and oversee execution of the seal according to client instructions. In Japan, an official company seal, or inkan, and the accompanying company seal registration certificate, or jitsu-in, must be registered with the Japanese Legal Affairs Bureau at the time of company establishment. The names of the representative(s) authorized to use the seal must also be registered at the time of establishment. The company seal and seal certificate are typically needed for operations such as opening a bank account, official registrations, purchasing assets, and concluding contracts.

Document Storage Management

SANSEI advises and administers over the secure storage of client company documents in Japan when:

• Conserving office space
• Offices are relocated or reorganized
• Offices are placed into temporary dormancy
• Offices are shut down

Statutory Government Filings

As hiring employees for your Japan office, SANSEI ensures that you meet the deadlines for all required government filings:

• National, prefectural, and local tax offices
• Report on Establishment of Wage-paying Office
• Social Insurance Agency
• Report on Establishment of Office, Report on Acquisition of Status (for Health Insurance and Welfare Pension Insurance)
• Public Employment Security and Labor Standards Inspection Offices
• Report on Establishment of Office, Report on Acquisition of Status (for Employment Insurance)
• Submission of Working Rule (Labor Standards Office)
• Agreement Regarding Overtime and Duty on Rest Days (Labor Standards Office)
• Insurance-related reports (Labor Insurance Law)
• Report on Selection of Proxy (Labor Insurance Law)

Accounts Receivable and Invoicing

Overseas clients with Japan subsidiaries regularly call upon SANSEI to oversee accounts receivables and reconciliations. In Japan, billing practices are comparatively unique, and so a local administrator can be integral in conforming to regional practice. SANSEI will handle:

• Monthly customer invoicing
• Accounts receivables maintenance
• Collections and deposits
• Accounts receivables reconciliations for head office

Bookkeeping Services

Our clients probe for opportunities to unloose resources by outsourcing. And in Japan, accounting functions are outsourcing targets while facing regulation, culture, labor costs, and changing technologies and markets. So, our clients have turned to SANSEI. If tending to non-core functions proves distracting to you, then look to us. You can decide how many functions to outsource and when.

SANSEI Outsourcing Services lineup:

In Japan, the primary accounting software for bookkeeping is Kanjo Bugyo, as applied for local reporting compliance. At SANSEI, monthly financial reports are created by outputting the data from the Japanese software onto Excel file. Also, SANSEI can input the financial reporting data directly onto an SAP groupware system employed by the overseas head office.

In overseas financial reporting for branch offices in Japan, ongoing consideration is needed for allocation of corporate expenses, accounting for procurement costs, and tax deducted at source. And for subsidiary operations, this can relate to method for recording earnings. Methods such as the 105% cost-plus markup are administered to maintain soundness in profit and loss calculations.

Schedule management can be a key consideration as well. Overseas head offices maintain deadlines for monthly financial reports submitted from Japan branches and subsidiaries. In view of Japan national holiday schedules, a cutoff date is occasionally accelerated if work periods might prove strained. In such a case, the principle of accrual system can be used to finalize required financial statements. All in all, optimizing work quality (and eradicating any risk of human error) is best facilitated by the extent to which standardization and simplification are applied for financial reporting plans and schedules. Such a system in place and ongoing allows that tasks coming due are properly handled, particularly in case of any arising emergency.