Audit fees/Service Fees
Q1 How are audit/service fees calculated?
Service fees are technically calculated as “Hour Charge Rate” x “Number of staff involved” x “Workload hours”. We always propose our quotation after evaluating how much man-hours would be required for the jobs. The man-hours vary depending on the scale of the company, and the kind of business, etc.
For your reference, service fees for relatively small companies are presented on the following URL.
Q2 Are service fees higher/lower than other firms?
Our staff members are certified public accountants being proficient in English and familiar with international business.
We are deal with international tasks that would take a lot of time for regular Japanese CPAs in relatively less time. In addition, we get feedback from our clients that our are reasonably priced compared to other Big4 audit firms.
Q3 Why are you able to provide service at reasonable costs?
We, for example, strive to reduce indirect costs such as office rent costs, which are generally considerable burden for audit firms or accounting firms, by introducing remote work.
In addition, most of the accountants belonging to our firm are not full-time employees and our firm entered into out-sourcing contract for each job. Therefore, burden of labour cost like social insurance expenses would be relatively less and we are able to provide service at reasonable level.
Q4 How are service fees are proposed for SMEs?
In principle, we are not able to reduce necessary workloads for the task, but it may be possible to offer a lower service fees depending on the client’s situation such as budget or financial capability. Specifically, full-package audits are not necessarily required for audit/due diligence of small subsidiaries. Therefore, we often propose conducting simplified procedures targeting only the Balance Sheet and Income Statement after obtaining consent of the parent company.
In addition, we may be able to propose lower service fees by proposing that only high level tasks are handled by experienced accountants, and other domestic and simple tasks are handled by normal accountants. In any cases, please feel free to contact us.
Q5 Could we consult you anytime?
We are able to deal with your request quickly by introducing IT tools actively. And then, our staff members can immediately have a web meeting such as Zoom / Microsoft Teams.
If you let us know your email address, we will be ready to set up a time to talk to you. You, of course, can also contact us by email.
Auditing/accounting consulting services
Q1 How should we choose a Japanese audit firm/accounting firm?
First, you should ask for quotation. After obtaining, please check how the firm estimates workloads and investigate proposed fees are reasonable for the tasks.
If the accounting firm present only an amount of service fee and does not indicate specific workloads for the tasks, it is not recommended to retain the firm because they may change the proposal fees according to the financial situation of your company.
Q2 We are considering changing the auditor now. How should we proceed?
Replacement of external auditor is not uncommon in our industry.
For a relatively small subsidiary, it would be rational decision to select an audit firm/accountants according to the scale of the business.
It is also common for any companies to change auditors as they could not form mutual agreement regarding service fees. And then, the Japanese Institute of Certified Public Accountants (JICPA) also published guidelines regarding the replacement of auditors.
However, you should go ahead with procedures carefully and consider the best timing to inform previous auditors of replacement.
Q3 The parent company requests early closing of Japanese subsidiary’s accounts. However, we are at a loss as to how to move forward.
From the perspective of cost reduction, there would be a lot of companies operating business with a minimum number of personnel.
We can provide support service focusing on only necessary works your company requests, such as submission of consolidated packages based on IFRS and USGAAP, preparation of financial statements in English, monthly reporting, etc.
In addition, we also give you one-time support service where it is lack of human resource due to temporary leave or sudden retirement of an employee. Please feel free to contact us anyway.
Q1 What kind of firm is Nihonbashi International Accounting?
We are a team of professionals being fluent in English and having a high level of competence as certified public accountants.
However, such Japanese CPAs and tax accountants with extensive international experience are mostly belonged to Big4 firms and major consulting firms. Hence, small and medium-sized clients could not help asking such jobs to big firms with relatively higher level of fee.
We, Nihonbashi International Accounting Firm, are established to support companies with such concerns.
Q2 Are there any differences from other accounting firms?
While specializing in international tasks, we are also actively introducing IT tools in the course of our work. Especially, we are also promoting remote work in the same way as Big4 audit firms.
And then, we move forward with non-head office policy and strive to reduce indirect costs. By investing in IT technology actively, and our work efficiency has progressed considerably compared to other small and middle sized accounting firms.
Efforts to reduce troublesome manual works and useless time for commuting to the client lead to a focus on real client service. Which is the core point for accounting firms, we believe.
Q3 What is the difference from an audit firm?
We are a firm that conducts international business, and mainly comprised by Japanese CPAs or USCPAs with extensive business experience.
However, we have not yet been a registered audit firm because the Japanese CPAs Act requires that five members with JICPAs qualifications must be gathered at least.
We have not reached to the step to organize registered audit firm, however, we always make efforts to establish a robust organizational structure that is in no way inferior to the registered audit firm.
Q4 What kind of clients does your firm have relationship with?
Our audit clients are mainly subsidiaries domiciled in Japan under overseas parent companies, or companies established as joint ventures between Japanese and overseas business.
And then, the clients we provide consulting services are planning to expand business to overseas and some of them are aiming to be listed in overseas stock exchange market. We are able to handle a wide range of business, from small requests to difficult projects.