Field Notes · 2026-04-03
Reading a Japanese year-end close through an auditor’s eyes
What experienced auditors look for first when opening a March fiscal-year trial balance.
March year-ends dominate Japanese corporate calendars. When we open a trial balance, we start with accounts that moved unusually relative to turnover: accrued bonuses, consumption tax payable, and construction-in-progress for companies with capital projects.
We also scan related-party balances early. Family companies in Shimane often have personal guarantees, director loans, or shared property costs that need clear disclosure even when amounts look modest.
Bank reconciliations tell a story about cash control. Uncleared items older than thirty days, especially deposits in transit, attract follow-up before we expand substantive testing elsewhere.
A clean close is not a polished binder alone. It is a finance team that can explain every material estimate in plain language and produce the supporting contracts without searching through email for half a day.