List of professional services
Ranging from startups without dedicated staff to handle accounting, tax and payroll processing to medium-sized MNEs desiring to focus on core business activities in Japan by outsourcing back-office operations, we at EY can customize our services to your needs - whether it be for a single service (e.g. payroll calculations) or a combination of services (e.g. accounting and tax return preparations).
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プロフェッショナルサービスの内容
One-stop accounting outsourcing services for foreign companies
I. OUTSOURCING SERVICES
A. Accounting outsourcing services
Accounting outsourcing services include the collection of bookkeeping data and the preparation of reports.
- Settlement of monthly or quarterly accounts.
- Our USCPAs and tax accountants will assist with the preparation of financial statements in compliance with basic accounting guidelines for Japanese SMEs, generally accepted accounting principles of the US (US GAAP) or International Financial Reporting Standards (IFRS) and conduct periodical reviews thereof.
- We support preparing monthly financial statements and accounting reports in English that are submitted to overseas parent companies.
- By using our online accounting application known as WebAccountingManager, your company’s headquarters will gain access to accounting data.
- Accounting data that have been entered can be uploaded to various enterprise resource planning (ERP) systems (e.g., NetSuite and other Oracle products, Microsoft Dynamics NAV, Microsoft Dynamics GP (formerly Great Plains) and SAP).
B. Tax services
Through EY tax services, we broadly support tax-related operations in partnership with Ernst & Young Tax Co., beginning with the preparation of notifications.
Tax return services
- Corporate tax
- Corporate enterprise tax and corporate inhabitant tax
- Consumption tax returns
- Depreciable assets tax
- Business facility tax
- Company business overview
We can explain tax audit compliance and coordination of tax matters with overseas parent companies or overseas head offices to parent companies in English to facilitate smooth communication.
C. Payroll services
Payroll and statutory benefit services include the following:
- Salary-related operations, starting from payroll calculations to the sending of salary statements, payment preparations and preparations of withholding income tax and residence tax payment statements
- HR support such as preparation of labor insurance and social insurance documents and the drafting of employment rules (EY Social Insurance and Labor Advisors Corporation will provide this service)
- Calculations other than payroll calculations, such as gross-up calculations and estimates
D. Payment support services
Payment support services include a series of coordination works until payments are completed. We also provide fund procurement support while reporting to the headquarters about deposits and payments.
II. TRANSACTION REVIEW SERVICES
We will examine journal entries that have been recorded in light of foreign accounting standards and group policies and propose adjusting entries for the purpose of preparing financial statements that will be attached to tax returns. Besides comprehensive accounting reviews, we also provide area-specific support such as reviewing employee expense reimbursements, AP module input and management.
III. ANNUAL REPORT SUPPORT
We support preparing English semi-annual reports (financial statements and notes) prepared for IR purposes, and financial statements to be published in the prospectuses issued for overseas investors.
IV. SHARED SERVICES CENTER SUPPORT
A. ERP support
Do you find the recording of journal entries into the accounting system and ERP system of your parent company burdensome? If that is the case, EY professionals can visit your office and carry out this task on your behalf or from an EY office by establishing a VPN connection. We will efficiently provide effective co-sourcing services by assigning the right staff for the right task. EY professionals have experience working with various systems, such as SAP, Oracle, Microsoft GP(Great Plains) or Microsoft NAV (formerly Navision). We also may contact your parent company as necessary to carry out operations.
B. Shared service center support
The number of companies relying on overseas shared service centers (SSC) to carry out their bookkeeping operations has increased, and relevant ledgers are usually created in English. There have even been cases where Japanese consumption taxes and withholding taxes have not been processed accurately. Furthermore, when accounting and tax treatments differ, an increasing number of companies must go through the additional burden of communicating with overseas SSCs to maintain consistencies between their ledgers and prepare tax return documents. The EY teams provide SSC service support by contacting SSCs, clients and contract accounting firms that prepare tax returns to prepare financial statements and account breakdowns required when filing tax returns, consumption tax statements and documents required for pro forma standard taxation. We can also prepare worksheets that are necessary for filing tax returns.
C. Consumption tax support
Due to the turbulent economic environment in recent years, branches and subsidiaries of foreign companies located in Japan are forced to cut down on costs.
As part of such efforts, there is a trend of relocating back-office functions (accounting, HR, payroll calculations, etc.) to SSCs in other countries or parent companies. As a result, the accounting systems used by SSCs or parent companies tend to produce errors of not recording Japanese consumption tax transactions properly. The issue becomes even more complicated because Japanese consumption tax is not always indicated on invoices, statements, receipts, and other evidential documents. For this reason, such issues tend to surface at the end of the fiscal year. Some companies cannot submit consumption tax reconciliation worksheets required by Japanese tax authorities to be prepared for the submission of consumption tax returns.
V. FEES
We try to be as transparent as possible in our professional fees and that fees is an important factor in determining which outsourcing vendor to retain. If there is interest in our services, we will hold an online session and walk you through each line in our Outsourcing Fee Calculator and share a printout with you, so you have a better idea of our costs.
Why EY
Our well qualified accounting professionals (CPA-USA) provide quality services in English. We use of a bilingual web-based accounting application. One-stop services in association with Ernst & Young Tax Co. and EY Social Insurance and Labor Advisors Corporation.
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