Hello, this is Sayu CPA Office in Tokyo.
In this article, we explain how the global cloud accounting software QuickBooks is used in Japanese subsidiaries, and the key points to watch out for. This is a frequent topic when supporting foreign-owned companies in Japan.

1.What is QuickBooks?

QuickBooks, developed by Intuit Inc. (US), is one of the world’s most popular cloud-based accounting software platforms. Widely used by small and medium-sized businesses and startups—particularly in North America—it offers functions such as:
– Invoicing
– Expense management
– Bank account integration
– Financial reporting

For global businesses, one of its biggest advantages is that it provides a unified, English-based accounting platform across multiple countries.

2.Intuit Has Exited the Japanese Market

It is important to note that Intuit has already withdrawn from the Japanese market. QuickBooks is no longer localized for Japan and remains in English only. As a result, the software does not support Japanese tax rules or statutory reporting requirements.

3.No Support for Japanese Consumption Tax(JCT)

The biggest challenge of using QuickBooks in Japan is that it does not support Japanese Consumption Tax (JCT). Specifically, it does not handle:
– Multiple tax rates, such as the 8% reduced tax rate
– The Qualified Invoice System (インボイス制度) introduced in Japan
– Output of reports in Japanese tax return formats
– Automatic calculation of consumption tax liability

Therefore, it is practically impossible for Japanese subsidiaries to rely on QuickBooks alone for bookkeeping and tax compliance.

4.Why Some Foreign Subsidiaries Still Use QuickBooks

Despite these challenges, foreign-owned companies in Japan often continue to use QuickBooks, mainly for global governance and consistency. Typical reasons include:
– The US or overseas parent company already uses QuickBooks, so the Japanese subsidiary follows suit
– Group-wide monthly or quarterly reporting is standardized in QuickBooks
– Overseas finance teams can directly review Japanese subsidiary data

In such cases, Japanese entities often operate under a dual-system approach:
– Japanese accounting software (Money Forward, Freee, Yayoi, etc.) → Used for tax filings and local compliance
– QuickBooks → Used for global reporting purposes

5.Practical Issues of Dual-System Operation

Operating both Japanese accounting software and QuickBooks in parallel creates several challenges:
– Double data entry: the same transactions must be entered into both systems
– Account mapping: aligning the chart of accounts between Japan GAAP and QuickBooks
– Reconciliation adjustments: differences between global reporting standards and Japanese statutory accounting must be explained

This often creates a heavy workload for local staff, and external accounting firms are frequently engaged to support smooth operations.

6.How Sayu CPA Office Supports QuickBooks Users

At Sayu CPA Office, we specialize in assisting foreign-owned subsidiaries in Japan that use QuickBooks. Our services include:
– Bookkeeping and consumption tax filing under Japanese GAAP
– Parallel input and data checks in QuickBooks
– Preparation of head-office reporting packages (available in English)
– Account mapping and adjustment journal entries

This way, our clients can meet both Japanese compliance requirements and global reporting obligations.

FAQ: QuickBooks in Japan

Q1. Can QuickBooks alone cover accounting and tax for a Japanese entity?
Unfortunately, no. Since QuickBooks does not support Japanese consumption tax, it cannot fully handle local tax filings. Very small entities might manage manually, but it is not sustainable for larger subsidiaries.

Q2. Isn’t dual-entry into QuickBooks and Japanese software too much work?
Yes, the workload increases. Ultimately, it is a balance between global reporting efficiency and local compliance needs.

Q3. What are the benefits of using QuickBooks in Japan?
– Real-time access for overseas finance teams
– Unified global reporting
– Standardized English interface for smooth communication with HQ

Q4. What kind of support can Japanese subsidiaries get?
We provide services such as QuickBooks data entry, Japanese tax return preparation, English reporting packages, and even tax audit support.

Q5. Do you also support other global accounting systems like Xero or NetSuite?
Yes. We also work with Xero, NetSuite, and other international cloud-based accounting platforms.

Case Studies

Case 1: US Software Company’s Japanese Subsidiary
– Challenge: Required to use QuickBooks for consolidation, but QuickBooks does not handle JCT.
– Solution: Local compliance handled with Yayoi Accounting; monthly input also maintained in QuickBooks for HQ reporting.
– Our Role: Dual input and reconciliation, ensuring smooth US HQ reporting and timely tax filing in Japan.

Case 2: Asian Startup Expanding into Japan
– Challenge: Staff in Japan were not familiar with English accounting software.
– Solution: Local staff used Japanese software, while we handled QuickBooks entries and global reporting.
– Result: HQ requirements were met without overburdening local employees.

Conclusion

QuickBooks is a powerful tool for global standardization, but its lack of support for Japanese tax law makes local compliance impossible without supplementary systems.

At Sayu CPA Office, we bridge this gap for foreign-owned companies in Japan by providing dual-support services—covering both Japanese statutory requirements and global QuickBooks reporting needs.

If your company is expanding into Japan or needs support with QuickBooks operations for a Japanese subsidiary, please feel free to contact us.