Year End Accounting
Every 12 months companies are required to give a financial report for the year end accounts. The period usually varies from company to company. But notably most public corporations unlike the private corporations always give their end year accounting report at the end of every June. All projects undertaken through-out the year must be submitted. This gives the Government a chance to gauge how its funds were used by different government offices, projects and associations. It is only once the financial report has been issued that auditors come in to audit the books of accounts for different ministries and government offices. Financial reports can be done by internal accounts or companies can employ external accountants and provide all the available financial details of the transactions that took place.
For private companies, the date of in-corporation is different depending on the date corporation of the company took place. That is why several private companies and organizations always give their financial accounting all through the months of the year. The fiscal year as we might wish to call it differs considerably from country to country. But a look at the general trends states that companies prefer to have their new year begin on 1st July of each year. This is the time when all financial reports must be given and any fund balances that have been unused for various reasons returned to the treasury for further allocation. It is only through such reports that auditors are able to confirm any misappropriation of funds by the concerned company.
Any end year financial report requires submission of Tax forms to the various authorities on how they have faired financially, whether they have made profit or losses, this has to be clearly indicated. Those companies who do not give their financial report as required usually face penalties and pay higher taxes for not remitting their financial reports within the stated period as required by the law. Any financial report is required to include any financial dealings within the past year which includes rents, salaries, purchases, and any other financial transactions that was within the company’s authority during the period of the year.
Choosing a Japanese Bank for Your Company
Japan is the second largest economy and the third leading financial country in the world. That is why more foreign investors venture and expand in Japan. The need for trustworthy bank is very important for these foreign companies. The banking system of Japan can be classified into three sectors. Each sector follows a strategy and work module for the specific needs of each client.
First is the Central Bank of Japan, then the three Megabanks of Japan, and the Money Center Banks. The Central Bank has a big influence on the economy of the country and it gives its clients absolute freedom. The three Megabanks of Japan focuses more on Internet or online banking. The money center banks are regional banks for different regions in the country. These are your options in choosing a Japanese bank for your company. Make sure that the bank you choose is appropriate for the needs of your bank.
For a better definition of the banks, it is best to take a deeper look at each of the categories of the Japanese banks:
1. The Central Bank of Japan. This is also called “Nichigan”. Its headquarters can be found in Chuo, Tokyo. Dating back to the Meiji Restoration when Yen became the country’s currency, it became operational in 1882. In the present, it is still the strongest foundations of the Japanese economy after 128 years. During 1942, it was re-established. However, it faced closure during the war. Fortunately, it regained its operations during 1949. Now, it plays a very important role in the Japanese economy.
2. The Megabanks. The megabank is composed of three giant institutions namely the Mizuho Financial group, the Mitsubishi UFJ Financial Group and the Sumitomo Mitsui Financial Group. The Mizuho Bank is the third most profitable bank of Japan and ninth in the global market capitalization with $1.44 trillion worth of assets. With 68,000 employees from 30 countries all over the world, it is the 59th biggest financial hub in the world. Mitsubishi UFJ Financial Group on the other hand has a higher asset count with an estimated $2.4 trillion worth of assets. As a part of the Mitsubishi industry, it gets phenomenal response around the world, placing it on the second rank of the largest banking industry in the world.
3. Major Money Center Banks. These are the Resona Holdings, Sumito Trust and Mitsui Trust holdings.
4. Banks online and regional banks. Banks with subsidiaries online are Sumito, Sony Financial Holdings, and 7-Eleven Holdings. They serve their clients through digital banking online. Aichi Bank, Akita Bank and Aomori Bank are on the top lists of regional banks to who needs to access urban banking.
Foreign Companies in Japan Should Use a Bilingual Payroll Service
Why should foreign companies in Japan use a bilingual payroll service? Foreign companies should use a bilingual payroll outsourcing service in Japan like BPM who’s been operating for over 25 years because foreign companies expanding in japan may have language barrier problems. Foreign companies are very important for international business that is why there should be professional services for them. Japan is, in fact, the fourth biggest export market of America. They are also America’s second largest investors, investing $230 billion. Japan is also the second biggest economy of the world garnering a GDP of $5 trillion during 2009. This is why a lot of foreign companies prefer doing business in Japan. To get over language barriers payroll outsourcing in Japan must be bilingual.
Here are some other bilingual payroll outsourcing in Japan that may help your company, whether your company is a part of the fortune 500 or just a small company expanding in Japan:
1. Japan Management Consulting. JMC can give its clients in Japan a very flexible payroll services. They can provide initial payroll services such as Registration of companies, enrollment of employees and setting up master payroll data files with Japanese Labor and Social Insurance System. They also offer monthly services such as payroll calculations for the month and payroll payment for the month. Also, they give yearly payroll services.
2. I-Admin. This is Asia’s premier payroll and HR SaaS provider. The administrative needs of your organization’s payroll will be very easy with i-Admin’s comprehensive range of solutions. They can provide payroll solutions for local companies and multi-national companies with small to medium employee size. They also offer complex payroll services for large companies. They can manage your payroll instruction, bank payment files; generate payroll and statutory reports, and electronic pay slips for employees online.
3. Okamoto & Company. If you are looking for a bilingual payroll service that will really deliver to your needs, then Okamoto & Company is at your service. The payroll services you will receive from this company are of high quality. Their services includes, preparation of employee monthly payroll details, payroll ledger, deposit slips, etc. Okamoto & Company will do your payroll-related responsibilities with small cost and fast.
4. HTM Corporation. They can provide you with the country’s best payroll services. These payroll services are outsourced from Tokyo covering all of Japan. Their services include maintenance of payroll allowance, deductions, and other personal data needed to produce Japanese social insurance and payroll tax requirements.
Big Banks in Japan
Japan’s traditional banking system was segmented into clearly defined components in the late 1980s: commercial banks (thirteen major and sixty-four smaller regional banks), long-term credit banks (seven), trust banks (seven), mutual loan and savings banks (sixty-nine), and various specialized financial institutions. the five largest banks in the world, measured by total assets, were Japanese banks. These banks opened branches abroad, acquired existing foreign banks, and became engaged in new activities, such as underwriting Euro-yen bond issues. The investment houses also increased overseas activities, especially participating in the United States Treasury bond market (where as much as 25 to 30 % of each new issue was purchased by Japanese investors in the late 1980s).
As of March 1989, the five largest city banks in Japan (in order of total fund volume) were Dai-Ichi Kangyo Bank, Sumitomo Bank, Fuji Bank, Mitsubishi Bank, and Sanwa Bank. A group of government financial institutions paralleled the private banking sector. The Japan Export-Import Bank, the Japan Development Bank, and a number of finance corporations, such as the Housing Loan Corporation, promoted the growth of specialized sectors of the domestic economy. The Japan Export-Import Bank (Exim Bank) is the only government institution with an international focus. The Exim Bank provides financing for trade between Japan and developing countries, performing the function of export-import banks run by governments in other countries (including the United States), although its participation is possibly greater. Japan’s securities markets has three categories of securities companies in Japan, the first consisting of the “Big Four” securities houses (among the six largest such firms in the world): Nomura, Daiwa, Nikko, and Yamaichi. The Big Four play a key role in international financial transactions and were members of the New York Stock Exchange. The second tier of securities firms contained ten medium-sized firms. The third tier consisted of all the smaller securities firms registered in Japan.
Apart from these there are Existing National Institutions, like; Development Bank of Japan or DBJ, Japan Finance Corporation or JFC Nihon , Japan Bank for International Cooperation or JICA , Okinawa Development Finance Corporation, Postal Savings Bank.
Dysfunctional National Institutions like; Agriculture Forestry and Fisheries Finance Corporation , Japan Finance Corporation for Small and Medium Enterprise, National Life Finance Corporation , Japan Post , Japan Finance Corporation for Municipal Enterprises.
The big three megabanks in Japan are; Mizuho Financial Group, Trust & Custody Services, Bank Mitsubishi UFJ Financial Group.
These are the major foreign banks, playing in Japan; Citibank, JPMorgan Chase, The Hongkong and Shanghai Banking Corporation, Standard Chartered Bank, Barclays plc, Lloyds TSB, Calyon, De Nederlandsche Bank, Korea Exchange Bank, and Bank of India.
Photo: Eastern News
First Steps To Banking In Japan
So its come to that critical moment in your stay in Japan were you finally need a bank account, be it for a new job or simply to have funds sent from back home to further your travel in the land of the rising sun.
I shall try to help make this process as smooth as possible for you by listing some helpful tips and information. So let’s get right to it shall we.
Step 1 Choosing a bank: This step can either be breathtakingly simple or mind numbingly difficult, depending on how in depth you want to get into each banks differences. If interest rates, currency exchange, credit and loan options, mortgage rates and all the other banking banky things that banks do matter to you theｎ it’s going to require some checking on your part. However if simple having a building in which your money is some how magically stored in between spending sprees you can simply walk in off the street (assuming you meet the criteria in step 2) and get the ball rolling.
Step 2 Opening the account: Things you will need, an alien registration card, depending on the bank perhaps also a Hanko (Japanese Signature Stamp) and presumably some money. Unless you speak Japanese fairly well it would be advisable to either find a bank that caters to English speakers (or any other language for that matter) or take someone along with you to translate
Step 3 Accessing your money (the great ATM battle): So as you may already know, Japan is a country were cash is still by far the most common way to pay for things. Now this being the case you would assume that not only would cash machines be plentiful but you would be able to access them at anytime…Sadly this is not the case. Though there are more cash machines than there used to be (most convenience shops have them) though most of the ones you will find are only open at times the logic of which will escape even the most warped of minds. The only reason I can think of to stop ATMs from working from around 21:00-00:00 is to stop drunk salarymen spending all their money in hostess bars. Convenience shops are your best bet; they are open 24/7 and can be found almost everywhere. You should check that your bankcard can be used in the conbini closest to you.
Step 4 When leaving Japan: It is possible that when leaving Japan your bank will want you to close the account. Of course it’s entirely up to you if you tell them or not. If you chose not to, then perhaps It might be a good idea to ask a friend if you can use their address to receive mail from the bank while you are out of the country.