What the accountant should consult with a tax accountant

table of contents

  • What is the exclusive business of tax accountants and certified public accountants?
  • Is a tax accountant and a certified public accountant absolutely necessary?
    • Large company
    • Companies with nominating committees, etc.
    • Company with audit and supervisory committee
    • Corporations required by laws other than the Companies Act
  • What the accountant should consult with a tax accountant
    • Questions about tax returns
    • Witnessing a tax audit
    • Tax consultation
  • What the accountant should consult with a certified public accountant
    • Thing about accounting audit
  • You can consult with either a tax accountant or a certified public accountant
    • General tax and accounting questions
    • Bookkeeping agency and preparation of financial statements
    • Founding support, consulting
  • Summary

What is the exclusive business of tax accountants and certified public accountants?

For accountants, tax accountants and certified public accountants are both professionals involved in the company. However, the difference is not clear and it may be difficult to understand how to associate. Moreover, some of them also work as “○○ Certified Public Accountant / Tax Accountant Office” by themselves, or even though they are “○○ Accounting Office”, tax accountants are doing it. From the general eye, it’s hard to tell the difference in this job.
The key to dealing with these two professionals is to know the difference between monopoly operations. An exclusive business is a business that can only be performed by a person with a specific qualification.

The tax accountant’s exclusive business is “tax agency,” “preparation of tax documents,” and “tax consultation.” The main contents are as follows.

  • Acting for final tax returns
  • Witness a tax audit
  • Creating a tax return, etc.
  • Respond to individual tax consultation

In this way, the tax accountant’s exclusive business is tax affairs. However, in order to file a correct tax return, it is a prerequisite that the accounting is done correctly. Therefore, in general, there are many styles in which you undertake the process from checking the accounting books to preparing the final tax return as an advisor.

On the other hand, the exclusive business of certified public accountants is “audit certification business”. Only a certified public accountant can prove that the financial statements prepared through the audit are correct.
In addition, certified public accountants are allowed to register as tax accountants. For this reason, there are people who work concurrently as certified public accountants and tax accountants. Even if you are not registered as a tax accountant, you can answer general tax questions.

Is a tax accountant and a certified public accountant absolutely necessary?

There is no rule that requires you to enter into an advisory contract with a tax accountant or to be audited by a tax accountant. There is no problem if you submit the final tax return by yourself.
On the other hand, in the case of certified public accountants, there are corporations that are required by law to be “audited by an accounting auditor”. If you fall under this corporation, you must be audited by a certified public accountant or an audit corporation as often as necessary.

In addition, some companies dare to set up an accounting auditor with the aim of listing, even if they are not obliged to be audited by the accounting auditor. The corporations that are required to be audited by the accounting auditor are as follows.

Large company

Companies with capital of 500 million yen or more on the balance sheet for the final fiscal year, or total of 20 billion yen or more in the liabilities section

Companies with nominating committees, etc.

A company that has a nominating committee, an audit committee, and a compensation committee inside the company. The majority of the committee is composed of outside directors, and it is characterized by having executive officers who execute business separately from the directors.

Company with audit and supervisory committee

A company that has an audit and supervisory committee inside the company. Compared to a company with auditors, the number of directors required is smaller, and there are advantages such as being able to meet the human requirements that must be secured in order to be listed. For more information on companies with auditors, please see the following article.

Accounting Plus: What is the transition status of companies with audit and supervisory committees? Latest information summary

Corporations required by laws other than the Companies Act

Medical corporations and social welfare corporations are obliged to be audited by the accounting auditor for each corporation that has a certain amount of debt and income according to the laws and regulations that regulate its governance.

 

What the accountant should consult with a tax accountant

Questions about tax returns

Creating a tax return is the exclusive business of a tax accountant. If you have any questions about your tax return, talk to your tax accountant.

Witnessing a tax audit

If you would like to attend a tax audit, ask a tax accountant. A tax audit will be conducted without the presence of a tax accountant, but only the tax accountant has the authority to answer questions from the tax office instead.

Tax consultation

Certified public accountants and consultants will also be available to explain general tax-saving schemes. However, tax consultation in the form of answering individual cases is the exclusive business of a tax accountant. This line is very difficult to draw in practice, but most of the consultations given by accounting staff are to solve specific situations in the company. Considering this, it is better to consult a tax accountant for tax consultation from the accounting staff.

What the accountant should consult with a certified public accountant

Thing about accounting audit

For companies that require an audit by an accounting auditor, check with the certified public accountant or the person in charge of the audit corporation who conducts the audit regarding any unclear points in the accounting process, preparation of financial statements, and the contents of notes. Even if you have an advisory tax accountant, you should leave the judgment to the auditing body for the contents related to the subsequent accounting treatment.

You can consult with either a tax accountant or a certified public accountant

General tax and accounting questions

If you have a general tax or accounting question, you can ask either a tax accountant or a certified public accountant.

Bookkeeping agency and preparation of financial statements

Surprisingly, bookkeeping and financial statement preparation are not exclusive to a particular profession. Therefore, you can ask either a tax accountant or a certified public accountant.

Founding support, consulting

You can consult with either a tax accountant or a certified public accountant regarding start-up support and consulting such as fund procurement, subsidy application, and business succession. In addition, although certified public accountants may have a strong image of being involved with large companies, the Japanese Institute of Certified Public Accountants also handles small and medium-sized enterprises such as start-up support and growth support.

(Reference) Japanese Institute of Certified Public Accountants Support for SMEs by Certified Public Accountants

Summary

Tax accountants and certified public accountants each have their own monopoly, and are color-coded with a focus on tax and accounting. Therefore, please consult with each professional about exclusive business.
It is the business other than the exclusive business that makes a decision. Tax accountants and certified public accountants have a lot of common work other than monopoly work, and most of them can be solved by asking either one. However, it is not good to repeat questions that go beyond the content of the advisory contract just because they answer.

The above is just a general theory when consulting with a tax accountant and a certified public accountant. It can be said that how to actually deal with each other depends on the contents of the advisory contract. Some may meet every month, but have never read the contract. Even tax accountants and certified public accountants who have a long relationship should take this opportunity to check the advisory contract and review whether the current relationship is appropriate.

 

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