Your Trusted Partner for Seamless Business Operations in Japan

Experience & Expertise in Japanese Accounting & Payroll Services

At KM&Y K.K., we specialize in delivering comprehensive outsourcing services tailored to the unique needs of businesses operating in Japan. Our expertise encompasses accounting, payroll, labor and social insurance, and company incorporation services. With over 30 years of experience in Japan, including tenures with PwC and TMF, our services are delivered in English by a seasoned accountant committed to precision, efficiency, and client success.

The KM&Y Difference

Understanding that every business has unique needs, KM&Y K.K. is dedicated to delivering outsourcing services that are fully tailored to meet each client's specific requirements. We collaborate closely with our clients, offering flexible, customized solutions with a focus on delivering swift and effective results. This commitment to personalized service and rapid response is what sets KM&Y apart.

Our Values

Success in the Japanese market is our shared goal with every client. We are committed to providing services that not only meet but exceed expectations, ensuring that our clients are empowered to achieve their business objectives. Our approach is grounded in the belief that the true measure of our success lies in the long-term success of our clients. Trust, excellence, and mutual growth are at the heart of everything we do.

Services

Accounting

Comprehensive monthly accounting and bookkeeping services tailored to your business needs. Ensuring accuracy and compliance with Japanese GAAP, IFRS, or US GAAP standards.

Monthly Accounting and Bookkeeping
- Comprehensive preparation of journal entries, including:
  - Revenue and Accounts Receivable
  - Accounts Payable
  - Depreciation and Amortization
  - Accrued Expenses and Tax Provisions
- Maintenance of computer-based accounting system, including master data and transaction data
- Preparation of the Yen general ledger and trial balance
- Development and upkeep of the fixed asset register
Monthly Reporting Services
- Preparation of Yen financial statements in accordance with Japanese GAAP
- Conversion of Japanese GAAP statements to IFRS or US GAAP
- Creation of a customized reporting package tailored to the client’s format, including IFRS or US GAAP
Year-End Reporting Services
- Year-end accounting in line with Japanese GAAP and your specific accounting standards
- Detailed preparation of essential financial documents:
  - Balance Sheet
  - Income Statement
  - Data required for Japanese tax returns
- Development of a comprehensive year-end reporting package, customized to meet the client’s format

Payroll

Expert payroll services to ensure your company’s compliance with Japanese labor and social insurance systems. We handle everything from initial registration to monthly calculations and annual reporting, tailored to meet your business needs.

Initial Payroll Services
- Register your company with the Japanese Labor and Social Insurance Systems.
- Handle employee enrollment in the Japanese Labor and Social Insurance Systems. (Note: Initial registration with Japan Social Insurance and Japan Labor Insurance can only be completed after legal incorporation and the hiring of the first employee.)
- Set up the master payroll data file to ensure accurate and compliant payroll processing.
Monthly Payroll Calculation Services
- Calculate gross salary, deductions, and net salary for each employee.
- Prepare essential payroll reports, including:
  - Payroll summary for management approval
  - Individual payslips for employees
  - Pay-in slips for national withholding tax
  - Pay-in slips for local resident inhabitant tax
- Provide gross-up payroll calculations for foreign employees and local employee benefits upon request.
Annual Payroll Services
- Calculate and report annual bonuses.
- Perform year-end payroll tasks, including withholding income tax calculations and tax adjustments (December).
- Prepare and file the Annual Withholding Tax Report (Shiharai-Chosho-Gokeihyo) for national tax purposes and the Annual Salary Report (Kyuyo-Shiharai-Hokokusho) for local tax purposes by January 31.
- Prepare and file the annual labor insurance premium report (July).
- Prepare and file the annual social insurance premium report (July).
- File or renew the Article 36 submission for overtime to the Labor Standards Bureau.

Company Incorporation

Strategic support in choosing and establishing the optimal business entity for your entry into the Japanese market. From incorporation to ongoing compliance and management, we ensure your business is set up for success.

Entering the Japanese market requires choosing the right type of business entity. There are three primary options:
- Kabushiki Kaisha (K.K.): A joint-stock company, the K.K. is the most respected and recognized type of company in Japan, ideal for businesses seeking credibility and growth potential.
- Godo Kaisha (GK): Similar to a Limited Liability Company, the GK offers a more flexible structure with lower startup costs and less stringent reporting requirements, making it a popular choice for small to medium-sized enterprises.
- Branch Office: A branch office serves as an extension of an overseas company, providing a suitable structure for businesses that wish to maintain a direct connection to their parent company.
After your company is established, KM&Y provides ongoing support, including:
- Filing initial tax applications related to the entity’s incorporation
- Ensuring corporate tax compliance
- Providing comprehensive bookkeeping and accounting services
- Managing payroll operations
KM&Y collaborates closely with clients to determine the most suitable entity type for their business needs and ensures compliance from a corporate tax perspective.

Meet Kirk Dove

Over 30 Years of Expertise in Japan's Business Landscape

Kirk Dove brings over 30 years of extensive experience in the Japanese market, specializing in guiding companies through market entry and delivering comprehensive back-office services. His areas of expertise encompass corporate tax, financial and management accounting, payroll, human resources, and individual tax services.

Kirk has worked across a diverse array of industries, including retail, banking, technology, advertising, fashion, pharmaceuticals, manufacturing, and both B2C and B2B sectors. He has been instrumental in helping clients develop robust internal controls and streamline accounting, payroll, and HR processes, resulting in more efficient operations and precise financial reporting.

Professional Experience:

- Chuo Coopers & Lybrand Associates, Inc. (1988 - 2000)
- PricewaterhouseCoopers BPO Japan K.K. (2000 - 2002)
- PwC Outsourcing Services LLC (2002 - 2020)
- TMF Group Limited (Japan) (2020 - 2024)
- KM&Y K.K. (2024 - Present)

Have a question or need expert advice? Send us a message, and let's explore how we can help your business thrive in Japan.