JP Bookkeeping

Liabilities — 負債 (300–399)

| Code | 勘定科目 | English | Type | |---|---|---|---| | 301 | 支払手形 | Notes Payable | Current liability | | 306 | 買掛金 | Accounts Payable (Trade) | Current liability | | 312 | 短期借入金 | Short-Term Borrowings | Current liability | | 320 | 未払金 | Accounts Payable (Other) | Current liability | | 321 | 未払費用 | Accrued Expenses | Current liability | | 322 | 未払法人税等 | Income Tax Payable | Current liability | | 323 | 未払消費税 | Consumption Tax Payable | Current liability | | 324 | 預り金 | Withholdings Payable | Current liability | | 325 | 前受金 | Advances Received | Current liability | | 326 | 前受収益 | Unearned Revenue | Current liability | | 329 | 仮受消費税 | Consumption Tax Received (Output) | Current liability | | 330 | 賞与引当金 | Provision for Bonuses | Current liability | | 340 | 長期借入金 | Long-Term Borrowings | Non-current liability | | 342 | 社債 | Bonds Payable | Non-current liability | | 351 | 退職給付引当金 | Retirement Benefit Liability | Non-current liability |

Equity — 純資産 (400–499)

| Code | 勘定科目 | English | Type | |---|---|---|---| | 411 | 資本金 | Share Capital | Equity | | 421 | 資本剰余金 | Capital Surplus | Equity | | 431 | 利益剰余金 | Retained Earnings | Equity | | 441 | 元入金 | Owner's Capital (sole prop) | Equity | | 451 | 事業主貸 | Owner's Drawings (sole prop) | Equity | | 452 | 事業主借 | Owner's Contributions (sole prop) | Equity |

Revenue — 収益 (500–599)

| Code | 勘定科目 | English | Type | |---|---|---|---| | 511 | 売上高 | Sales Revenue | Revenue | | 512 | 役務収益 | Service Revenue | Revenue | | 521 | 受取利息 | Interest Income | Non-operating revenue | | 522 | 受取配当金 | Dividend Income | Non-operating revenue | | 523 | 有価証券売却益 | Gain on Sale of Securities | Non-operating revenue | | 531 | 雑収入 | Miscellaneous Income | Non-operating revenue | | 911 | 固定資産売却益 | Gain on Sale of Fixed Assets | Extraordinary income |

Cost of Sales — 売上原価 (600–649)

| Code | 勘定科目 | English | Type | |---|---|---|---| | 601 | 期首商品棚卸高 | Opening Inventory | COGS | | 611 | 仕入高 | Purchases | COGS | | 621 | 仕入値引・返品 | Purchase Returns/Allowances | Contra COGS | | 631 | 期末商品棚卸高 | Closing Inventory | Contra COGS | | 641 | 外注費 | Outsourcing / Subcontractor Costs | COGS |

Selling, General & Administrative — 販売費及び一般管理費 (700–799)

| Code | 勘定科目 | English | Type | |---|---|---|---| | 711 | 役員報酬 | Director's Compensation | SGA Expense | | 712 | 給料手当 | Salaries and Allowances | SGA Expense | | 713 | 賞与 | Bonuses | SGA Expense | | 714 | 法定福利費 | Statutory Benefits (social insurance) | SGA Expense | | 715 | 福利厚生費 | Employee Welfare | SGA Expense | | 721 | 地代家賃 | Rent and Lease | SGA Expense | | 722 | 賃借料 | Equipment Rental | SGA Expense | | 723 | 水道光熱費 | Utilities (Water, Gas, Electricity) | SGA Expense | | 731 | 通信費 | Telephone and Internet | SGA Expense | | 732 | 旅費交通費 | Travel and Transportation | SGA Expense | | 733 | 消耗品費 | Consumables and Supplies | SGA Expense | | 734 | 事務用品費 | Office Supplies | SGA Expense | | 735 | 新聞図書費 | Books and Subscriptions | SGA Expense | | 738 | 車両費 | Vehicle Expenses | SGA Expense | | 741 | 広告宣伝費 | Advertising | SGA Expense | | 745 | 接待交際費 | Entertainment Expenses | SGA Expense | | 746 | 会議費 | Meeting Expenses (incl. light meals) | SGA Expense | | 751 | 支払手数料 | Fees and Commissions | SGA Expense | | 752 | 支払報酬 | Professional Fees Paid | SGA Expense | | 754 | 荷造運賃 | Packing and Shipping | SGA Expense | | 755 | 保険料 | Insurance Premiums | SGA Expense | | 761 | 修繕費 | Repairs and Maintenance | SGA Expense | | 763 | 租税公課 | Taxes and Public Charges | SGA Expense | | 764 | 減価償却費 | Depreciation Expense | SGA Expense | | 765 | 貸倒引当金繰入 | Bad Debt Provision | SGA Expense | | 766 | 貸倒損失 | Bad Debt Losses | SGA Expense | | 771 | 研究開発費 | R&D Expenses | SGA Expense | | 781 | 雑費 | Miscellaneous Expenses | SGA Expense |

Non-Operating Expenses — 営業外費用 (800–899)

| Code | 勘定科目 | English | Type | |---|---|---|---| | 811 | 支払利息 | Interest Expense | Non-operating expense | | 812 | 有価証券売却損 | Loss on Sale of Securities | Non-operating expense | | 813 | 為替差損 | Foreign Exchange Loss | Non-operating expense | | 821 | 雑損失 | Miscellaneous Losses | Non-operating expense |

Extraordinary Items — 特別損益 (900–999)

| Code | 勘定科目 | English | Type | |---|---|---|---| | 911 | 固定資産売却益 | Gain on Sale of Fixed Assets | Extraordinary income | | 915 | 固定資産売却損 | Loss on Sale of Fixed Assets | Extraordinary loss | | 921 | 固定資産除却損 | Loss on Disposal of Fixed Assets | Extraordinary loss | | 931 | 法人税等 | Corporate Income Tax | Tax expense | | 932 | 法人税等調整額 | Deferred Tax Adjustment | Tax expense |

Recognition Standards

| Criterion | Rule | |---|---| | Sale of goods | When goods are delivered and control transfers (出荷基準 shipping point or 検収基準 acceptance basis) | | Services | When performance obligation is satisfied (progress or completion) | | Construction | Percentage of completion (工事進行基準) or completion method | | Small entities (中小会計要領) | Permitted to use realization basis (実現主義) — when cash or receivable is established |Under 企業会計原則 (Corporate Accounting Principles) and the Revenue Recognition Standard (ASBJ No.29 / 収益認識基準, effective from April 2021 for large companies)

Sole Proprietors — 青色申告 vs 白色申告

| Method | 青色申告 (Blue Return) | 白色申告 (White Return) | |---|---|---| | Bookkeeping | Double-entry (複式簿記) required for ¥650,000 deduction | Single-entry (簡易簿記) allowed | | Special deduction | ¥650,000 (e-filing + double-entry) or ¥100,000 (simplified) | None | | Accrual/Cash | Accrual basis standard; cash basis permitted for small businesses (現金主義 — taxable income < ¥3m and revenue < ¥3m prior 2 years) | Simplified recording | | Loss carryforward | 3 years | Not available | | Family employee salaries | Deductible (事前届出) | Limited (事業専従者控除: max ¥500,000/860,000) |

Key Categories for Tax Return

| Category (科目) | Tax Treatment | Notes | |---|---|---| | 接待交際費 (Entertainment) | Corporations: ¥8m annual limit deductible (中小法人) or 50% of entertaining expenses, whichever is higher; sole proprietors: fully deductible if business-related | Must be clearly business purpose | | 会議費 (Meetings) | Fully deductible | Per-person meal ≤ ¥10,000 (from 2024; was ¥5,000) classifies as 会議費 not 交際費 | | 福利厚生費 (Welfare) | Fully deductible | Must be for all employees equally (not selective) | | 減価償却費 (Depreciation) | Per statutory useful lives | Cannot exceed statutory limit for tax purposes | | 租税公課 (Taxes/Duties) | Deductible: business tax, property tax, stamp duty, auto tax | NOT deductible: income tax, resident tax, penalties | | 寄付金 (Donations) | Limited deductibility based on formula | Special treatment for government/designated donations |

Non-deductible items list

法人税・住民税 — Corporate/resident income tax; 延滞税・加算税 — Late payment penalties and surcharges; 役員賞与 (excessive) — Director bonuses exceeding pre-filed limits; 交際費 exceeding ¥8m limit (中小法人) — Entertainment over cap; 減価償却超過額 — Depreciation exceeding statutory rate; 引当金繰入超過額 — Provision amounts exceeding tax-law limits法人税法上の損金不算入

Depreciation Thresholds

| Acquisition Cost | Treatment | |---|---| | < ¥100,000 | Immediate expense (消耗品費 or 雑費) — no capitalization required | | ¥100,000 – ¥199,999 | Option: 3-year straight-line write-off (一括償却資産) regardless of useful life | | ¥200,000 – ¥299,999 | Normal depreciation; OR use 少額減価償却資産特例 (see below) | | ≥ ¥300,000 (¥400,000 from Apr 2026) | Must capitalize and depreciate over statutory useful life |

少額減価償却資産の特例 (SME Immediate Expensing)

| Item | Current (to Mar 2026) | Revised (from Apr 2026) | |---|---|---| | Threshold per asset | < ¥300,000 | < ¥400,000 | | Annual cap | ¥3,000,000 total | ¥3,000,000 total | | Eligible entities | Blue-return SMEs (資本金 ≤ ¥100m, employees ≤ 500) | Blue-return SMEs (employees ≤ 400) |

Depreciation Methods

| Method | Application | |---|---| | 定額法 (Straight-line) | Default for corporations (from 2012 acquisitions); always for buildings/structures/intangibles | | 定率法 (Declining balance — 200% DB) | Optional for machinery, vehicles, furniture; default for sole proprietors pre-election | | Statutory useful lives (耐用年数) | Set by MOF ordinance — must follow for tax depreciation |

Common Statutory Useful Lives

| Asset | Useful Life | SL Rate | |---|---|---| | 鉄筋コンクリート建物 (RC building) — office | 50 years | 2.0% | | 木造建物 (Wooden building) — office | 24 years | 4.2% | | 建物付属設備 (Fixtures — electrical) | 15 years | 6.7% | | 機械装置 (General machinery) | 7–12 years | Varies | | 車両 (Motor vehicles) — standard car | 6 years | 16.7% (SL) / 33.3% (DB) | | 工具器具備品 (Furniture/Equipment) | 5–15 years | Varies | | パソコン (Computers — server) | 5 years | 20.0% | | パソコン (Computers — other) | 4 years | 25.0% | | ソフトウェア (Software — for own use) | 5 years | 20.0% | | ソフトウェア (Software — for sale copies) | 3 years | 33.3% |

Common Japanese Bank Formats

| Bank | Export Format | Key Fields | |---|---|---| | MUFG (三菱UFJ) | CSV, PDF | 取引日, 摘要, 支払金額, 預入金額, 残高 | | SMBC (三井住友) | CSV, PDF | 日付, お取引内容, お引出し, お預入れ, 残高 | | Mizuho (みずほ) | CSV, PDF | 取引日, 摘要, 出金額, 入金額, 残高 | | Resona (りそな) | CSV, PDF | 日付, 摘要, 支払金額, 受入金額, 残高 | | Japan Post Bank (ゆうちょ) | CSV | 日付, 取引内容, 出金, 入金, 残高 | | Rakuten Bank (楽天) | CSV | 取引日, 入出金内容, 出金額, 入金額, 残高 | | PayPay Bank | CSV | 日付, 内容, 出金, 入金, 残高 |

Common Transaction Descriptions (摘要)

| Pattern | Likely Classification | |---|---| | 振込 (furikomi) + company name | Income — customer payment (売掛金回収) | | カード (card) + merchant | Expense — check merchant for category | | 口座振替 (kōza furikae) | Direct debit — utility, insurance, tax | | 給与振込 (kyūyo furikomi) | Payroll payment (給料手当) | | 利息 (risoku) | Interest income (受取利息) or expense (支払利息) | | 手数料 (tesūryō) | Bank fee (支払手数料) | | 国税 / 消費税 / 法人税 | Tax payment — not deductible expense | | 社会保険料 (shakai hoken ryō) | Social insurance — 法定福利費 | | クレジットカード引落 | Credit card settlement — match to individual transactions | | 自動送金 (jidō sōkin) | Standing transfer — check payee (rent, loan) | | ATM引出し | Cash withdrawal — petty cash or owner drawings | | 振替 between own accounts | Internal transfer — exclude |

中小会計要領 (SME Basic Accounting Guidelines)

| Simplification | Detail | |---|---| | No tax-effect accounting | 税効果会計 not required | | No consolidated statements | Individual entity statements only | | Retirement benefits | Simplified calculation or tax-basis | | Financial instruments | At cost (no fair value for unlisted) | | Revenue recognition | Realization basis (実現主義) permitted | | Inventory valuation | Last purchase price method accepted | | Scope | All SMEs; encouraged by Japan Federation of CPAs and tax professionals |Developed for small and medium enterprises not requiring audited financial statements

青色申告 Sole Proprietor Simplifications

| Feature | Simplified Bookkeeping (簡易簿記) | Full Double-Entry (複式簿記) | |---|---|---| | Deduction | ¥100,000 | ¥650,000 (with e-filing via e-Tax/freee) | | Books required | Cash book + fixed asset ledger + sales/purchases ledger | General journal + general ledger + all subsidiary ledgers | | Statements | Income/expense statement (収支内訳書) | P&L (損益計算書) + Balance Sheet (貸借対照表) |

Corporate Filing Simplifications

| Entity Size | Requirements | |---|---| | 大会社 (Large company — capital ≥ ¥500m or liabilities ≥ ¥20b) | Full audit, consolidated, ASBJ standards | | 中小会社 (SME — below thresholds) | 中小会計要領 or 中小会計指針, tax-basis accounting for many items, compilation by tax accountant (税理士) typical | | 合同会社 (LLC — Gōdō Kaisha) | Same accounting rules as KK, but no share capital disclosure structure |

Sole proprietor income tax filing process

決算書: P&L + Balance Sheet feed into 確定申告書; Key schedules: 減価償却費の計算 (depreciation schedule), 地代家賃の内訳 (rent details); Add back: excess depreciation, personal expenses, penalties; Deduct: 青色申告特別控除 ¥650,000 (if qualified); Filing deadline: March 15 of following year (振替納税 auto-debit = ~April 20)確定申告書B / 青色申告決算書

Corporate tax filing process

Start with accounting profit (当期純利益); 別表四: adjustments (加算: add back non-deductible items; 減算: deduct allowable items); 別表十六: depreciation schedule (compare book vs tax depreciation); 別表十五: 交際費 entertainment expense limit calculation; Effective combined tax rate (法人実効税率): ~33.6% for SMEs on income > ¥8m; ~23.2% for SMEs on first ¥8m法人税確定申告

Consumption Tax (消費税申告)

| Item | Description | CoA Mapping | |---|---|---| | 課税売上 | Taxable sales (10% standard / 8% reduced rate) | 511, 512 | | 非課税売上 | Non-taxable sales (land, financial services, etc.) | 511 (flagged) | | 輸出免税売上 | Export exempt sales (0%) | 511 (flagged) | | 課税仕入 | Taxable purchases (input tax) | 184 (仮払消費税) | | 控除対象外消費税 | Non-creditable input tax (proportional rule) | 763 (租税公課) | | 仕入税額控除 | Input tax credit (仕入税額) | Net against 329 (仮受消費税) |

Invoice system rules

Registered invoice issuers (適格請求書発行事業者) must issue qualified invoices with registration number; Buyers can only claim input tax credit with qualified invoices; Small business transitional measure (2割特例): eligible businesses can pay 20% of output tax as simplified calculation (through Sep 2026); 簡易課税 (Simplified tax calculation): if base-period sales ≤ ¥50m, use deemed purchase ratio by industry (50%–90%)インボイス制度 — from October 2023

Social Insurance and Payroll

| Item | Employer Burden | Nominal Code | |---|---|---| | 健康保険 (Health Insurance) | ~5% of salary | 714 法定福利費 | | 厚生年金 (Pension) | ~9.15% of salary | 714 | | 雇用保険 (Employment Insurance) | 0.95% (general industry) | 714 | | 労災保険 (Workers' Comp) | 0.25–8.8% (industry-specific) | 714 | | 子ども・子育て拠出金 | 0.36% (employer only) | 714 |