Audit fees/Service Fees
Q1 How are audit/service fees calculated?
Service fees are calculated based on the following formula: “Hourly Charge Rate” x “Number of staff involved” x “Workload hours.” Before proposing a quotation, we evaluate how much man-hours would be required for the job. The man-hours needed can vary depending on the scale of the company and the type of business.
For your reference, we have provided service fee tables for relatively small companies on the following URLs:
Fee tables (IFRS/USGAAP convergence)
Q2 Are your service fees higher or lower than those of other firms?
Our staff members are certified public accountants who are proficient in English and familiar with international business.
We are capable of handling international tasks that would take regular Japanese CPAs much longer. Furthermore, our clients have given us feedback that our service fees are reasonably priced compared to those of other Big4 audit firms.
Q3 How are you able to provide services at reasonable costs?
We strive to reduce indirect costs, such as office rent costs, which are generally a considerable burden for audit and accounting firms, by introducing remote work.
Additionally, most of the accountants in our firm are not full-time employees, and we enter into outsourcing contracts for each job. Therefore, the burden of labor costs, such as social insurance expenses, is relatively lower, and we are able to provide services at a reasonable level.
Q4 How are service fees proposed for SMEs?
In principle, we are unable to reduce the necessary workloads for a task, but it may be possible to offer lower service fees depending on the client’s situation, such as their budget or financial capability. Specifically, full-package audits may not be necessary for the audit/due diligence of small subsidiaries. Therefore, we often propose conducting simplified procedures that target only the balance sheet and income statement after obtaining consent from the parent company.
Additionally, we may be able to propose lower service fees by suggesting that only high-level tasks be handled by experienced accountants, while other domestic and simple tasks are handled by normal accountants. In any case, please feel free to contact us.
Q5 Can we consult with you anytime?
We are able to quickly address your requests by actively introducing IT tools. Our staff members are available to have a web meeting, such as Zoom/Microsoft Teams, immediately.
If you provide us with your email address, we will be ready to set up a time to talk with you. Of course, you can also contact us by email.
Auditing/Accounting Consulting Services
Q1 How should we choose a Japanese auditing/accounting firm?
When choosing a Japanese auditing/accounting firm, it is important to obtain a quotation and check how the firm estimates workloads and proposes fees for the tasks.
If the firm only presents a service fee amount without indicating specific workloads for the tasks, it is not recommended to retain the firm, as they may change the proposed fees according to the financial situation of your company.
Q2 We are considering changing auditors. How should we proceed?
It is not uncommon to replace an external auditor in our industry. For a relatively small subsidiary, it is recommended to select an audit firm/accountant according to the scale of the business. Companies may change auditors if they cannot form a mutual agreement regarding service fees, and the Japanese Institute of Certified Public Accountants (JICPA) has also published guidelines regarding the replacement of auditors.
However, it is important to proceed with the procedures carefully and consider the best timing to inform the previous auditors of the replacement.
Q3 The parent company has requested an early closing of the Japanese subsidiary’s accounts. However, we are at a loss as to how to move forward.
From the perspective of cost reduction, many companies operate with a minimum number of personnel.
We can provide support services that focus on the necessary works your company requests, such as the submission of consolidated packages based on IFRS and USGAAP, preparation of financial statements in English, monthly reporting, etc.
In addition, we also offer one-time support services for situations where there is a lack of human resources due to temporary leave or sudden retirement of an employee. Please feel free to contact us for any inquiries.
Q1 What kind of firm is Nihon-bashi International Accounting?
We are a team of professionals who are fluent in English and are highly competent as certified public accountants.
However, Japanese CPAs and tax accountants with extensive international experience are primarily associated with Big4 firms and major consulting firms.
As a result, small and medium-sized clients often find it difficult to engage their services due to their relatively higher fees.
Nihon-bashi International Accounting Firm was established to address these concerns and support companies in need.
Q2 What distinguishes Nihonbashi International Accounting Firm from other accounting firms?
While specializing in international tasks, we actively incorporate IT tools into our work.
In particular, we promote remote work in the same way as Big4 audit firms. Additionally, we operate under a non-head office policy and strive to reduce indirect costs.
By investing in IT technology and enhancing work efficiency, we have progressed significantly compared to other small and mid-sized accounting firms.
Our focus is on delivering real client service, which is the core principle of accounting firms.
Q3 What is the difference between Nihon-bashi International Accounting Firm and an audit firm?
We are a firm that conducts international business, primarily composed of Japanese CPAs or USCPAs with extensive business experience.
However, we are not yet a registered audit firm because the Japanese CPAs Act requires a minimum of five members with JICPAs qualifications.
Although we have not yet established a registered audit firm, we are committed to creating a robust organizational structure that is in no way inferior to registered audit firms.
Q4 What kinds of clients does Nihonbashi International Accounting Firm work with?
Our audit clients are mainly subsidiaries domiciled in Japan under overseas parent companies or companies established as joint ventures between Japanese and overseas businesses.
We also provide consulting services to clients who plan to expand their business overseas or aim to be listed on overseas stock exchange markets.
We can handle a wide range of requests, from small projects to complex assignments.