Japanese Business Glossary

接待交際費 (settai kosaihi) refers to entertainment and social expenses incurred in the course of business activities in Japan. These expenses are typically related to entertaining clients, customers, or business partners to strengthen business relationships and foster goodwill.

Examples of settai kosaihi include costs for meals, drinks, event tickets, and other hospitality activities. While these expenses can be substantial, they are often considered necessary for maintaining and developing business connections.

In accounting and tax contexts, settai kosaihi may be partially or fully deductible, subject to certain limits and conditions set by tax regulations. Proper documentation and justification of these expenses are important to ensure compliance with tax laws and to take advantage of any allowable deductions.

白色申告 (shiroiro shinkoku) refers to "white tax return" in Japan. It is a simplified tax filing system for individuals who are self-employed or have other non-salaried income. Unlike the blue tax return (青色申告), which offers more benefits and requires detailed bookkeeping, the white tax return involves less stringent record-keeping and fewer reporting requirements. This system is generally easier for small business owners and freelancers to manage, but it offers fewer tax deductions and benefits compared to the blue tax return. Filing a shiroiro shinkoku involves reporting income and expenses to the tax authorities, ensuring that all taxable income is accurately declared.

会計基準 (kaikei kijun) refers to accounting standards in Japan. These standards are a set of principles and guidelines that govern the financial reporting and accounting practices of companies. The primary objective is to ensure consistency, reliability, and transparency in financial statements, making them useful for investors, regulators, and other stakeholders.

In Japan, the accounting standards are issued and managed by various organizations, including the Financial Services Agency (FSA) and the Accounting Standards Board of Japan (ASBJ). These standards cover various aspects of financial reporting, such as revenue recognition, expense reporting, asset and liability valuation, and disclosure requirements.

Japanese companies must comply with these standards to ensure their financial statements accurately reflect their financial position and performance. This compliance is crucial for maintaining investor confidence and fulfilling regulatory requirements.

借用書 (shakuyousho) is a loan agreement or promissory note in Japan. It is a written document that records the details of a loan transaction between a lender and a borrower. This document typically includes information such as the amount of money borrowed, the interest rate, repayment terms, and the due date for repayment.

The purpose of a shakuyousho is to provide a clear and legally binding record of the loan agreement to protect both parties' interests. It helps to avoid misunderstandings or disputes by clearly outlining the terms and conditions agreed upon by the lender and the borrower.

In addition to financial loans, shakuyousho can also be used for other types of borrowing, such as borrowing goods or equipment. The document serves as proof of the borrower's obligation to return the borrowed items or repay the loan according to the specified terms.

差し引き保険料 (sashihiki hokenryou) refers to the net insurance premium. This is the amount of insurance premium that remains after deductions such as discounts, subsidies, or other adjustments have been applied to the gross premium.

For instance, if you purchase an insurance policy and the initial premium is ¥50,000, but you receive a discount of ¥5,000, the net insurance premium would be ¥45,000. This is the actual amount you need to pay for the insurance coverage after accounting for any applicable deductions. The term ensures clarity in the final amount payable by the policyholder.

記帳 (kicho) refers to bookkeeping in Japan. This process involves recording financial transactions and maintaining accurate financial records for a business or individual. Bookkeeping is a fundamental aspect of accounting and financial management, ensuring that all monetary transactions are systematically documented and organized.

The tasks involved in kicho include recording income and expenses, tracking assets and liabilities, and maintaining ledgers and journals. This practice helps businesses monitor their financial health, prepare financial statements, and comply with tax regulations.

Accurate bookkeeping is essential for effective financial management, enabling businesses to make informed decisions, plan for the future, and ensure transparency in their financial dealings. It also plays a crucial role in audit processes and financial reporting.