Japanese Business Glossary

電子帳票システム (denshi chohyo shisutemu) refers to an electronic document management system in Japan. This system is used to create, store, manage, and distribute electronic forms and documents, according to the Electronic Bookkeeping Act, replacing traditional paper-based processes.

The electronic document management system streamlines administrative tasks, enhances efficiency, and improves accuracy by automating the handling of various documents, such as invoices, purchase orders, and reports. It often includes features like digital signatures, secure storage, and easy retrieval of documents, ensuring compliance with legal and regulatory requirements.

By adopting an electronic document management system, businesses can reduce costs associated with paper, printing, and storage, while also minimizing the risk of errors and enhancing data security. This system is particularly valuable in improving workflow, facilitating better data management, and supporting the digital transformation of business operations.

償却資産 (shokyaku shisan) refers to depreciable assets in Japan. These are tangible fixed assets used in business operations that lose value over time due to wear and tear, usage, or obsolescence. Examples include machinery, equipment, vehicles, buildings, and furniture.

The cost of these assets is gradually expensed through depreciation, spreading the expense over the useful life of the asset. This process reflects the asset's decreasing value and allocates the cost as an expense against the revenue it helps generate.

Depreciation of assets is crucial for accurate financial reporting and tax purposes, ensuring that the financial statements reflect the true value and usage of the assets. Properly managing and accounting for these assets allows businesses to benefit from tax deductions, optimize their financial performance, and maintain compliance with accounting standards and tax regulations.

財産 (zaisan) refers to property or assets in Japan. This term encompasses all forms of wealth owned by an individual or entity, including both tangible and intangible assets.

Tangible assets (有形資産 = yūkei shisan) include physical items such as real estate, vehicles, equipment, and personal belongings. Intangible assets (無形資産 = mukei shisan) include non-physical items such as stocks, bonds, intellectual property, patents, and copyrights.

Zaisan can also cover financial assets like cash, bank deposits, and investments. In legal and financial contexts, managing and protecting one's assets involves various activities such as estate planning, asset management, and tax planning.

脱税 (datsuzei) refers to tax evasion in Japan. This term describes the illegal practice of deliberately avoiding paying taxes owed to the government. Tax evasion can take various forms, such as underreporting income, inflating deductions, hiding assets, or failing to file tax returns altogether.

Engaging in datsuzei is a serious offense that can lead to significant penalties, including fines, interest on unpaid taxes, and even imprisonment. The Japanese tax authorities, such as the National Tax Agency (NTA), actively work to detect and prevent tax evasion through audits, investigations, and enforcement actions.

Compliance with tax laws is crucial for maintaining the integrity of the tax system and ensuring that public services and infrastructure can be adequately funded. Legal tax planning and avoidance strategies, which involve arranging financial affairs within the law to minimize tax liability, are distinct from illegal tax evasion practices.

建設仮勘定 (kensetsu kari kanjo) refers to a Construction in Progress (CIP) account in Japan. This accounting term is used to track the costs associated with the construction of fixed assets that are not yet completed.

The CIP account accumulates all the direct and indirect costs incurred during the construction or development phase of a project. These costs can include materials, labor, and overhead. Once the construction is completed and the asset is ready for use, the total costs accumulated in the CIP account are transferred to the appropriate fixed asset account, such as buildings or machinery.

This process ensures accurate tracking and reporting of construction-related expenses, and helps in the proper capitalization of the costs for financial statement purposes. Managing the CIP account is crucial for businesses involved in construction and development to ensure correct financial reporting and compliance with accounting standards.

配当金 (haitokin) refers to dividends in Japan. Dividends are payments made by a corporation to its shareholders, usually in the form of cash or additional shares. These payments represent a portion of the company's profits that is distributed to its shareholders as a return on their investment in the company's stock.

Haitokin can be issued on a regular basis, such as quarterly or annually, depending on the company's dividend policy and financial performance. The amount of the dividend is typically determined by the company's board of directors and approved by the shareholders.

Receiving dividends provides shareholders with a source of income and can be an important factor in the overall return on investment from holding a company's stock. Dividends are often seen as a sign of a company's financial health and profitability.