All countries have a framework for their accountants, and in Japan you will notice that there is a trend towards offering bilingual accounting Tokyo and other top cities in the country. The bilingual accounting Tokyo firms offer are mainly to assist foreign-run companies, multinationals, and independent businessmen looking to do business in Japan.

In Japan, the Certified Public Accountant’s Act or the CPA Act is the regulatory framework everyone has to work with. It is a work in progress  and has been revised two times in past several years. The Japanese firmly believe in updated and improving their systems so that it is relevant to business trends and technology.

Under this Act, anyone who wishes to be certified as a CPAS must pass the exam conducted by the CPAAOB which is the CPA and Auditing Oversight Board. The CPAAOB is regulated in turn by the Financial Services Agency or FSA. As you see, at all levels, there is a body that oversees and regulates operations so that nothing is left to chance. It also means that any CPA in Japan is highly reliable, skilled, and knowledgeable about accounting practices in Japan.

Years ago, accounting standards were set by the Ministry of Finance, but this has changed gradually and assignment has been given instead to the FSA. In 2005, a new standard of accounting practice was introduced to enable international firms to work closely with the accounting framework of Japan so that it compliments each other. It considered the required reports needed by both the Japanese government and the other country so that there is no need for duplication of requirements or overlapping reports. This streamlined the procedure and fostered an easier, more effective business practice especially for foreign firms wishing to conduct business in Japan.

Two years later, in 2007, an agreement was ironed out to eliminate even more conflicts between Japan and other countries’ accounting practices. The target date specified for this agreement to be completed was this 2011.

In short, it is now easier to understand Japanese accounting practices and procedures because they have voluntarily agreed to an international standard in accounting practices. This explains why outsourcing or getting bilingual accountants is on the rise.