Japanese Business Glossary

領収書 (ryoshūsho) refers to a receipt or proof of payment in Japan. This document is issued by a seller or service provider to a buyer to acknowledge that payment has been received for goods or services. A typical receipt in Japan includes details such as the date of the transaction, the amount paid, a description of the goods or services, the name and contact information of the seller, and the payment method used.

Ryoshusho is an important document for both businesses and individuals, serving as a record of expenses for accounting, tax reporting, and reimbursement purposes. For businesses, keeping accurate receipts helps ensure proper bookkeeping and can be used to claim deductions on business expenses. For individuals, especially those who are self-employed, these receipts are essential for tracking personal expenses and filing accurate tax returns.

It is important to request and retain receipts for all significant transactions to ensure compliance with tax regulations and to maintain an organized financial record.

帳簿 (chobo) refers to accounting books or financial records in Japan. These are essential documents that businesses and self-employed individuals use to record their financial transactions, including income, expenses, assets, and liabilities. Keeping accurate and comprehensive 帳簿 is crucial for managing finances, preparing financial statements, and complying with tax regulations.

In Japan, maintaining proper accounting books is especially important for those who file a blue return, as it allows them to take advantage of various tax deductions and benefits. These records can be maintained in physical ledgers or through accounting software. Properly kept chobo help ensure transparency, accuracy, and accountability in financial reporting, and they are often reviewed by tax authorities during audits or assessments.

除却損 (jokyakuson) refers to a loss incurred from the disposal or removal of fixed assets in Japan. This accounting term is used when a company writes off assets that are no longer usable, such as machinery, equipment, or buildings, often due to obsolescence, damage, or the end of their useful life. The loss recognized is the difference between the asset's book value and any proceeds from its disposal, if applicable. Recording jokyakuson is important for accurate financial reporting, as it reflects the true economic value of the company's assets and helps in assessing the company's financial performance. Understanding and correctly accounting for jokyakuson ensures compliance with accounting standards and provides a clear picture of the company's asset management and financial health.

圧縮記帳 (asshuku kichou) refers to a bookkeeping method in Japan known as "compressed bookkeeping" or "compressed accounting." This accounting technique is used primarily to defer tax liabilities and manage the recognition of income and expenses.

In compressed bookkeeping, a company can reduce the book value of certain assets, such as fixed assets, by recording them at a lower value than their actual purchase price. This reduction creates a reserve, which can be used to offset future expenses or losses. The main objective of this method is to stabilize financial performance over time and to manage tax burdens more effectively. By deferring some of the tax liabilities to future periods, companies can smooth out fluctuations in their taxable income.

Compressed bookkeeping is subject to specific rules and regulations, and companies must comply with these requirements to benefit from this method. It is particularly relevant for businesses dealing with significant investments or assets that are prone to depreciation.

収入金額 (shuunyuu kingaku) refers to the amount of income or revenue in Japan. This term is commonly used in financial statements and tax documents to indicate the total earnings a person or business has received over a specific period. Shuunyuu kingaku can encompass various sources of income, such as salary, business revenue, interest, dividends, and rental income. Accurate reporting of one's income is essential for tax purposes, as it determines the amount of taxable income and the corresponding tax obligations. For businesses, it provides a key indicator of financial performance, helping to assess profitability and inform strategic decisions.

前払費用 (maebarai hiyou) refers to prepaid expenses in Japan. These are payments made in advance for goods or services that will be received or used in the future. Common examples of prepaid expenses include rent, insurance premiums, and subscription fees. In accounting, these payments are initially recorded as assets on the balance sheet because they represent future economic benefits. As the goods or services are consumed or the time period covered by the payment elapses, the prepaid expenses are gradually expensed on the income statement. This accounting treatment ensures that expenses are recognized in the period to which they relate, providing a more accurate reflection of a company's financial performance and position.