Key Takeaways
- The Japanese accounting services market was valued at approximately ¥2.8 trillion in fiscal year 2023, reflecting a compound annual growth rate (CAGR) of 3.8% from 2019 to 2023 driven by increased demand for compliance and advisory services.
- Accounting and bookkeeping services in Japan generated ¥1.2 trillion in revenue in 2022, accounting for 42% of the total professional services sector.
- The audit and assurance segment of Japan's accounting industry grew by 5.1% year-over-year in 2023, reaching ¥950 billion due to stricter corporate governance requirements.
- Tokyo Stock Exchange listed firms' audit fees averaged ¥250 million per firm in 2023.
- Deloitte Tohmatsu Tohmatsu Limited reported ¥850 billion in Japan revenues for FY2023.
- PwC Japan achieved 12.5% revenue growth to ¥620 billion in fiscal 2023.
- Number of CPAs in Japan reached 35,420 as of March 2024.
- Accounting professionals employed in Japan totaled 450,000 in 2023, up 2.1% YoY.
- Female CPAs comprised 28.5% of total in Japan by end-2023.
- Japan adopted IFRS for listed companies with 98% compliance rate by 2023.
- Corporate governance code revisions in 2021 increased audit committee requirements to 45% of listed firms by 2023.
- Tax reform act of 2023 introduced 15% global minimum tax for multinationals.
- Cloud adoption in Japanese accounting reached 67% of firms by 2023.
- AI-driven audit tools used by 52% of Big Four in Japan engagements 2023.
- Blockchain for invoice verification implemented in 35% of large firms 2023.
Japan's accounting industry is growing steadily, driven by strong compliance demand and technological adoption.
Employment and Professionals
- Number of CPAs in Japan reached 35,420 as of March 2024.
- Accounting professionals employed in Japan totaled 450,000 in 2023, up 2.1% YoY.
- Female CPAs comprised 28.5% of total in Japan by end-2023.
- Average annual salary for CPAs in Japan was ¥12.8 million in 2023.
- Big Four firms employed 45,000 accounting staff in Japan as of 2023.
- Newly qualified CPAs in Japan numbered 1,856 in FY2023.
- Accounting support staff (non-CPAs) totaled 320,000 in industry 2023.
- Tokyo metropolitan area hosted 55% of Japan's accounting professionals in 2023.
- Average age of Japanese CPAs was 47.2 years in 2023 survey.
- Part-time accounting professionals increased to 15% of workforce in 2023.
- International CPAs working in Japan numbered 4,200 in 2023.
- Turnover rate in Japanese accounting firms averaged 11.3% in 2023.
- CPA exam pass rate in Japan was 9.7% for first-time takers in 2023.
- Mid-tier firms employed 120,000 staff, 27% of total workforce 2023.
- Diversity index for accounting professionals in Japan rose to 0.68 in 2023.
- Remote working accountants comprised 38% of professionals in 2023 survey.
- Entry-level accountant salary averaged ¥5.2 million annually in 2023.
- Senior manager CPA salaries averaged ¥18.5 million in Tokyo 2023.
- Apprenticeship programs trained 2,500 new accountants in Japan 2023.
- Unemployment rate among accounting graduates was 1.8% in 2023.
- Partner-level CPAs numbered 8,750 across firms in Japan 2023.
- Overtime hours for accountants averaged 180 annually in Big Four 2023.
- Multilingual accountants (English proficient) were 22% of workforce 2023.
- SME-focused accountants totaled 180,000 professionals in 2023.
- Training hours per CPA averaged 45 annually under CPD rules 2023.
Employment and Professionals Interpretation
Major Firms and Revenue
- Tokyo Stock Exchange listed firms' audit fees averaged ¥250 million per firm in 2023.
- Deloitte Tohmatsu Tohmatsu Limited reported ¥850 billion in Japan revenues for FY2023.
- PwC Japan achieved 12.5% revenue growth to ¥620 billion in fiscal 2023.
- EY Japan Newco's total income reached ¥510 billion, up 9.2% from prior year.
- KPMG AZSA LLC posted ¥430 billion in revenues for FY2023 in Japan.
- BDO Japan saw 7.8% growth to ¥120 billion in 2023 revenues.
- Grant Thornton Japan reported ¥95 billion revenue, 6.4% increase in FY2023.
- Mazars Japan achieved ¥45 billion in revenues amid 11.2% growth 2023.
- Chuo-Aoyama Audit Corporation (EY affiliate) billed ¥280 billion in audits 2023.
- Shin Nihon Audit (KPMG) generated ¥210 billion from assurance services FY2023.
- Deloitte Touche Tohmatsu Audit fees totaled ¥320 billion for listed clients 2023.
- PwC Aarata's tax services revenue hit ¥190 billion in Japan 2023.
- Ernst & Young ShinNihon LLC consulting arm earned ¥150 billion FY2023.
- KPMG Tax Corporation revenues stood at ¥140 billion for 2023.
- Mid-tier firm Japan Audit & Finance Co. reported ¥35 billion revenue growth 8.1%.
- RSM Japan Total Accounting reported ¥28 billion in FY2023 revenues.
- Baker Tilly Japan achieved ¥22 billion revenue, up 10% in 2023.
- Local firm Asahi Audit Corporation earned ¥180 billion from audits 2023.
- Toranomon & Partners (Grant Thornton) revenues ¥65 billion FY2023.
- Big Four combined profit margins averaged 22.4% in Japan 2023.
- Deloitte Tohmatsu employee billable hours totaled 15.2 million in 2023.
- PwC Japan advisory billings per partner averaged ¥450 million in 2023.
- EY Japan market share in audits of TOPIX 500 firms was 26% in 2023.
- KPMG Japan forensic services billings reached ¥25 billion in 2023.
- BDO Japan client retention rate was 92% with ¥120 billion revenue base.
Major Firms and Revenue Interpretation
Market Size and Growth
- The Japanese accounting services market was valued at approximately ¥2.8 trillion in fiscal year 2023, reflecting a compound annual growth rate (CAGR) of 3.8% from 2019 to 2023 driven by increased demand for compliance and advisory services.
- Accounting and bookkeeping services in Japan generated ¥1.2 trillion in revenue in 2022, accounting for 42% of the total professional services sector.
- The audit and assurance segment of Japan's accounting industry grew by 5.1% year-over-year in 2023, reaching ¥950 billion due to stricter corporate governance requirements.
- Tax preparation services in Japan contributed ¥650 billion to the industry total in 2023, with a 4.7% growth attributed to complex international tax reforms.
- Consulting services within Japanese accounting firms expanded to ¥450 billion in revenue for FY2023, fueled by ESG reporting mandates.
- Overall market penetration of accounting services in Japan stood at 1.2% of GDP in 2023, up from 1.0% in 2020.
- The Big Four firms captured 28% of the Japanese accounting market share in 2023, totaling ¥784 billion in combined revenues.
- Mid-tier accounting firms in Japan saw a 6.2% revenue increase to ¥1.1 trillion in 2023, benefiting from SME digitalization support.
- Forensic accounting services grew by 12.4% in Japan during 2023, reaching ¥85 billion amid rising fraud investigations.
- Outsourcing of accounting functions in Japan increased market segment value to ¥320 billion in 2023, a 7.9% YoY rise.
- Projected CAGR for Japan's accounting industry from 2024-2028 is 4.5%, driven by regulatory changes and tech adoption.
- In 2023, the advisory services sub-market in Japan accounting reached ¥720 billion, up 5.6% from 2022.
- Japan's accounting market export services generated ¥150 billion in 2023, primarily to Asia-Pacific clients.
- Domestic non-audit services accounted for 55% of total accounting revenues in Japan FY2023, equating to ¥1.54 trillion.
- The recovery post-COVID boosted Japan's accounting sector by 3.2% in real terms for 2023.
- Sustainability assurance services emerged as a ¥210 billion segment in Japan's accounting market by end-2023.
- Regional disparity showed Tokyo accounting market at 48% of national total (¥1.34 trillion) in 2023.
- Inflation-adjusted growth for Japan's accounting industry was 2.9% in 2023 versus nominal 5.1%.
- Venture capital-related accounting services hit ¥95 billion in 2023 amid startup boom.
- Public sector accounting contracts totaled ¥280 billion in Japan for FY2023.
- E-invoicing compliance drove a 8.3% surge in related accounting services to ¥410 billion in 2023.
- Cross-border M&A advisory accounting fees reached ¥180 billion in Japan 2023.
- SME accounting services market share was 62% (¥1.74 trillion) of total in 2023.
- Digital tax filing support services valued at ¥240 billion in Japan's accounting sector 2023.
- Corporate restructuring accounting engagements generated ¥310 billion in FY2023.
- IFRS implementation consulting added ¥140 billion to market in 2023.
- Risk advisory services in accounting grew to ¥370 billion, 6.8% YoY in 2023.
Market Size and Growth Interpretation
Regulations and Standards
- Japan adopted IFRS for listed companies with 98% compliance rate by 2023.
- Corporate governance code revisions in 2021 increased audit committee requirements to 45% of listed firms by 2023.
- Tax reform act of 2023 introduced 15% global minimum tax for multinationals.
- J-GAAP convergence with IFRS reached 85% for SMEs in 2023 guidelines.
- Anti-money laundering (AML) audits mandatory for 100% of financial institutions since 2023.
- Sustainability disclosure standards (TSE) required for 90% Prime Market firms 2023.
- E-invoicing mandate effective April 2023 covered 70% of B2B transactions.
- Auditor rotation rule enforced for public interest entities every 15 years since 2023.
- Transfer pricing documentation threshold set at ¥5 billion revenue in 2023 tax code.
- 95% of listed companies filed XBRL-compliant financials in FY2023.
- Whistleblower protection law amendments boosted reporting by 25% in 2023.
- VAT rate remained 10% with digital services inclusion fully enforced 2023.
- Independent audit requirement for companies over ¥2 billion assets since 2023.
- ESG reporting framework aligned with ISSB standards for 60% firms by 2023.
- Penalty for non-compliance with tax filing rose to ¥1.5 million average 2023.
- Financial Instruments and Exchange Act inspections hit 1,200 firms in 2023.
- Qualified Institutional Investor (QII) audits standardized under new rules 2023.
- Data privacy law (APPI) amendments required accounting firms audits 2023.
- R&D tax credit utilization rate reached 78% for eligible firms in 2023.
- Consolidated financial statements mandatory for 92% of large corps 2023.
- Crypto-asset tax classification finalized with 55% gain tax rate 2023.
- SOX-equivalent internal control reporting compliance at 99% for TSE firms 2023.
- Invoice preservation period extended to 10 years under new tax law 2023.
- 42 new accounting standards issued by ASBJ in period 2020-2023.
Regulations and Standards Interpretation
Technology and Innovation
- Cloud adoption in Japanese accounting reached 67% of firms by 2023.
- AI-driven audit tools used by 52% of Big Four in Japan engagements 2023.
- Blockchain for invoice verification implemented in 35% of large firms 2023.
- RPA automation reduced manual bookkeeping by 44% in mid-tier firms 2023.
- 78% of Japanese accountants used cloud ERP systems like SAP by 2023.
- Cybersecurity investments in accounting firms rose 28% to ¥50 billion 2023.
- Machine learning for tax prediction adopted by 41% of firms in 2023.
- Digital twin technology for financial modeling used in 19% top firms 2023.
- API integrations for real-time reporting at 56% compliance in 2023.
- Generative AI pilots in audit analytics reached 25% of Big Four teams 2023.
- Big data analytics platforms deployed in 63% of Tokyo accounting offices 2023.
- Mobile accounting apps usage hit 72% among SME accountants 2023.
- Quantum computing trials for risk modeling began in 5 major firms 2023.
- OCR technology accuracy for invoices reached 98.5% in automated systems 2023.
- IoT integration for expense tracking in 29% corporate accounting 2023.
- VR training modules for CPA exams used by 15% candidates 2023.
- Predictive analytics for cash flow forecasted 85% accuracy in tools 2023.
- Low-code platforms for custom reports adopted by 48% firms 2023.
- 5G-enabled remote audits conducted in 12% international assignments 2023.
- ESG data automation tools implemented in 39% listed firms 2023.
- Robotic process automation ROI averaged 250% in first year for adopters 2023.
- Cloud migration completion rate 82% among top 500 firms 2023.
- NFT-based audit trails piloted in 8 fintech accounting projects 2023.
- Augmented reality for document review boosted efficiency 35% in trials 2023.
- Zero-trust security models enforced in 55% accounting IT systems 2023.
- Automated compliance checking software covered 91% tax rules 2023.
- Metaverse platforms for virtual client meetings used by 14% firms 2023.
- Edge computing for real-time transaction processing in 22% banks 2023.
Technology and Innovation Interpretation
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