ERP/ Shared Service Center Support
If your company is required to do bookkeeping using the parent company’s accounting and/or ERP system, such tasks could be a burden on employees if there have not been trained in accounting. We can offer co-sourcing services where our staff can either input information at your office and/or we would have a VPN setup where we can input inside our own offices. Under such situations, we would provide the necessary manpower to get the job done efficiently and effectively. Our professionals have experience working with various systems, such as SAP, Oracle and Microsoft Great Plains and also have the ability to communicate directly with your overseas counterpart.
Shared Service Center Service Support
Numerous companies now engage their regional SSC’s to provide accounting services for their overseas subsidiary.
Due to the complexity in each country’s payroll regulations and value added taxes, SSC’s often do not have the ability to process and record transactions which are accepted by their tax authorities. There are also numerous cases where tax treatment is based on how the accounting entries have been made.
Accordingly, a certain level of local tax knowledge is necessary to minimize income taxes.
We can act as the liaison between the SSC, local subsidiary and the firm preparing the tax returns. In particular, we can draft the necessary local GAAP financial statements, certain account details, tax reconciliation worksheet.
Consumption Tax Reconciliation Service
With the economic downturn, some foreign companies with Japanese branches and subsidiaries are downsizing their operations in Japan. We are seeing more instances of back office support functions (i.e. accounting, human resources, payroll, etc.) being transferred to regional Shared Service Centers (SSC) or to parent companies. One of the pitfalls to these transfers is that the systems used by the SSC and the parent companies generally are not adequately set up to record consumption tax information and cannot generate individual account level tax information. Moreover, consumption tax information in Japan is not always displayed as a separate line item on invoices, cash receipts or statements, which makes recording of these transactions a little more complicated and prone to errors. As a result, many companies are finding out, that they have problems assembling account level consumption tax reconciliation worksheets. These are often requested by the Japanese tax authorities when they have questions on their consumption tax returns.
In an effort to save costs, Shared Service Centers (SSC) have been employed to perform payroll processing in recent years.
However, due to interlocking relationships among withholding taxes, social insurance, labor insurance, and employee expectations on the employer, it is difficult for overseas SSC’s to provide accurate payroll computations as well as process the necessary labor and social insurance transactions.
In order to alleviate such problems, we offer “payroll coordination services” to act as the link and provide technical knowledge between the SSC and local subsidiary.