Hello from Sayu CPA Office!
As we move into October and the temperatures begin to cool, I hope everyone is doing well.
The crisp air in the early mornings reminds us that autumn has truly arrived. Personally, I’m looking forward to the season’s comforting highlights—delicious chestnuts, grilled saury, sweet potatoes, and of course, a warm bed!

For those in charge of accounting or HR, autumn is also the time to start thinking about year-end tax adjustments (nenmatsu chousei).
At our firm, we’re now preparing to send out notices to our clients regarding this year’s year-end adjustment procedures.
Year-end adjustments are an important annual process that reconciles the difference between the income tax withheld from employees’ salaries each month and their actual tax liability for the year.
Although this is a routine task, the details often change slightly each year—for example, Japan’s 2024 (Reiwa 6) adjustments included the fixed-amount tax reduction, while 2025 (Reiwa 7) will bring revisions to the basic deduction amount and related items.
These frequent changes make the process increasingly complex, and staying on top of them can be quite burdensome for those responsible.

However, postponing preparations tends to make things even harder later. Gathering all necessary documents, performing calculations, and verifying information under a tight schedule at year-end can become overwhelming.
That’s why it’s best to start early—such as by informing employees in advance and gradually organizing the required information.

In recent years, many companies have begun using cloud-based payroll software or digital year-end adjustment tools, which allow them to distribute and collect forms entirely online.
These systems help prevent input errors and reduce the review workload for HR and accounting staff.
If your company is still handling the process on paper, it may be a good time to consider switching to a cloud-based system.

At Sayu CPA Office, we support our clients in streamlining their year-end adjustment process by leveraging various cloud services.
If you’re handling year-end adjustments for the first time—or if you find the process increasingly burdensome each year—please feel free to reach out to us. We’d be happy to help make your workflow smoother and more efficient.