Nagamine & Mishima Consulting

Accounting practice since 1989

  • English
  • 日本語 (Japanese)
  • About
    • Message from the Managing Partner
    • Leadership
    • Advantage
  • Services
    • Startup Support
    • Expansion Support
    • Crisis Support
    • Cloud Support
  • Resources
    • Seminars
    • Newsletters
    • Monthly Checklists
    • Japanese Business Guide
  • Blog
  • Clients
  • Contact

Account Recievable

Account Receivable

If a specific customer’s Account Receivable is identified as uncollectible, it is written off by removing the amount from Account Receivable as bad debts expense. For Japan tax purpose, when is it recognized as uncollectible? In principle, 1 year after the latest payment from the debtor is the timing to write off as bad debt. At least 1 JPY needs to be recognized for Account Receivable as memorandum value.

Other cases such as when reorganization plan comes into place are timing to use the allowance method. Check with your accounting office to see what steps can be taken depending on the legal status of debtor. Provision Fund for Bad Dept has strict guidelines.

Please note that if you do not recognize bad debt at the year that is applicable under Japan tax code, you will not be able to go back in retrospect for tax purpose.

In case Account Receivable is in currency other than Japanese Yen, you may need to convert at year end. Be sure to confirm with your tax accountant on the requirement of yearend conversion.

Blog Categories

  • Blog
  • Facts about Tax
  • Newsletter

Need support for your business in Japan?


With over 25 years experience, our team is here to help. Fill out our simple contact form and we will be in touch very shortly.

People are Talking

  • “Our Group operates worldwide in the fashion and luxury goods sector and is active in the design, production and distribution of a wide range of products that includes prêt-a-porter, footwear and leather goods.

    We started our collaboration with Nagamine & Mishima Accounting Office since we decided to establish our subsidiary Aeffe Japan in November 2008. N&M supported us during the start up of this company in particular with the accounting, payroll, cash management and tax services and gave their total collaboration when Aeffe Japan built-up Its own financial department. We found a very high quality support and punctual answers to different one-shot questions that also helped us to understand, in an easy way, a really different way to operate.

    After the start up phase, we decided to confirm to N&M the tax and payroll services for Aeffe Japan and for Moschino Japan, our other Japanese subsidiary, and the daily relationship with them passed from the Italian HQ to the Japan subsidiaries in a very simple way.

    We are very satisfied to have chosen N&M.”

    Andrea Pagliarani, Group Financial Controller

    Aeffe Japan KK