The back office corporate services market in Japan is linked to trends in FDI (Foreign Direct Investment) to Japan, which are expected to increase year on year. New investment and M&A investment is increasing, while greenfield investment is unfortunately decreasing, but this investment is also expected to increase in the future due to the Japanese Government’s Digital Rural City State initiative. Clients requesting back-office services have their management team residing in the country of the parent company and not in Japan.
Therefore, they require highly specialized and stable back-offices services (mainly payroll-related, accounting and taxation), as their employees concentrate on sales, development, etc in Japan, and they expect perfect compliance. This is why Yoshimoto Tax Services maintains good communication with the parent company. In order to meet these expectations, it will ensure that the Japanese subsidiary is not in breach of legal compliance, answer any queries from the parent company immediately and contact the parent company immediately if it has any questions.
The company will also make sure to clearly indicate what cannot be done. The company is led by a certified tax professional. “As a certified tax professional, I can provide services on taxation as well as payroll and accounting, and there are probably only a few that can provide all three services. In Japan, only certified tax professional can consult on tax matters and prepare and submit tax documents (eg. Tax returns), and a direct delegation contract with the client is mandatory for tax matters.
Direct delegation agreements are important for compliance with the certified tax professionals’ act. This is difficult for people abroad to understand, but even if they do not understand the importance of this, as I am a certified tax professional, I naturally enter into a direct delegation of this, as I am a certified tax professional”, mentions Atsuko Yoshimoto, Director, Yoshimoto Tax Services.
Uniqueness in Approach
Yoshimoto keeps up to date with new information, especially with regard to taxation, as the law changes every year. Another important thing is to communicate with client’s employees in Japan.
Understanding the situation on the Japanese side is important, especially when it comes to payroll, which is a very sensitive area, so we make sure there are no mistakes. The company also asks the parent company for permission to communicate with Japanese employees in advance, to understand what it is not allowed to say, and to ensure confidentiality.
These are also unique approaches, as other companies do not have them. “Once the contract has been concluded, I go to the parent company to say greetings. After all, by meeting face to face, they have a better understanding of who I am and I also get a better understanding of the client than just on paper. Meeting the client’s business in person helps a lot, and visiting the new country is always exciting for me because it’s a world of the unknown. It’s also a unique approach”, states the Director.
The company is a one-person business. “I am confident in my service delivery, but I am limited in the number of clients I can take on. Also, if something happens to me, it is possible that my work may suddenly stop. Please keep this in your mind and make your decision. However, I also make sure that the end of contract is done right up to the end. Closing a contract is tough work, but I take it very seriously and also support the client after the end of the contract to help them move on to the next stage”, he adds.
Growth Story & Road Ahead
When Yoshimoto Tax Services was founded, it was just at the time of the 2008 financial crisis, Japan was also plunged into a recession, and it was extremely difficult to find Japanese clients. So it narrowed down sales channels to foreign nationals living in Japan, initially servicing individuals, and then gradually increasing the number of individuals and corporations. Japan does not have English as an official language, so all documents need to be in English and understood. In this respect, the number of client increased.
Yoshimoto keeps up to date with new information, especially with regard to taxation, as the law changes every year
For the first five years, the company mainly provided accounting and taxation services, not back-office services, and it has been providing full back-office services for about 10 years. When the company started, clients were mainly from the US, but now it works with corporate and individual clients from various countries, including the EU, the US, India, Sri Lanka and Africa. The company is always concentrating on the work in front of it and it has come up with new idea and implemented them, which have led it to where it is today. “The flow of time has accelerated, especially since the 2008 financial crisis, and the global situation is drastically changing. I believe that moving flexibly with the waves of change is what leads to innovation”, concludes Yoshimoto.
Atsuko Yoshimoto, Founder & CEO, Yoshimoto Tax Services
Founder and CEO of Yoshimoto Tax Services and Yoshimoto, who has 20+ years experience of tax and accounting services and 10+ years experience of back-office services. Since he is a certified tax professional, he can provide comprehensive back office services- HR payroll, accounting report, taxation. His background includes extensive experience in providing tax services for various global clients. He is known for his ability to lead clients to success by communicating closely with a wide range of personnel and anticipating and mitigating risks with my extensive knowledge of cross-border tax regulations. He has excellent written and verbal communication skills, proven reliability and commitment to successful project completion.
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