Japanese Business Glossary

酒 (sake) refers to alcoholic beverages in Japan. While the term can generically mean alcohol, it is most commonly associated with a specific traditional Japanese rice wine made through a brewing process similar to that of beer. Sake is made by fermenting polished rice, water, yeast, and a mold called koji. It comes in various types and flavors, ranging from sweet to dry, and can be enjoyed warm or cold, depending on the type and personal preference. Sake holds cultural significance in Japan, often being used in ceremonies, celebrations, and as an offering in religious rituals. It is also a popular drink served at social gatherings and meals.

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.

通勤手当 (tsuukin teate) refers to commuting allowance in Japan. This is a benefit provided by employers to their employees to cover the costs of traveling between home and work. The commuting allowance can include expenses for public transportation such as trains and buses, or even fuel costs if the employee drives a personal vehicle to work. The provision of a commuting allowance is a common practice in Japanese companies and is often included as part of the employee's compensation package. This allowance helps alleviate the financial burden of commuting and supports employees in maintaining a consistent and punctual attendance at work.

専従者 (senjuusha) refers to a dedicated worker or full-time worker in Japan. This term is commonly used in the context of family-run businesses or sole proprietorships where family members work full-time in the business. These individuals are not merely assisting part-time but are fully engaged in the day-to-day operations and management of the business. Recognizing someone as a senjuusha has implications for tax purposes, as the business owner can deduct a certain portion of the salary paid to these family members from their taxable income. This designation helps formalize the contributions of family members and provides a clearer structure for financial and operational responsibilities within the business.

社会保障費 (shakai hoshou-hi) refers to social security expenses in Japan. These expenses cover a range of public welfare programs designed to provide financial support and services to citizens. The primary components of social security costs include pensions, healthcare, unemployment benefits, and welfare services. These funds are crucial for supporting the aging population, aiding those with disabilities, and ensuring that unemployed individuals receive temporary financial assistance. Social security expenses are funded through taxes and contributions from both employers and employees, playing a vital role in maintaining social stability and economic security in Japan.