Can I do my own micro-corporation tax returns? How the cloud software 'Zenryoku Hojinzei' works and preparation tips to keep high tax accountant fees down

Hello, this is Ikupapa.

"If you start a corporation, you absolutely must hire a tax accountant for the tax return process."

I was convinced of this at first, too.

However, after looking into it, I found that for a micro-corporation (a small company designed to keep social insurance premiums low) where sales and daily transactions are simple, there is an option to use cloud software to file your own returns.

I am currently thoroughly researching the official website of 'Zenryoku Hojinzei' and user testimonials so that I can handle my own tax returns when I eventually establish my micro-corporation. In this article, I will clearly introduce the basic flow I have understood and the preparations you can make now to avoid being troubled by high tax accountant fees.

1. Why you should first reconsider the 'high fixed cost' of tax accountant fees

When your future independence or individual business (freelance) sales grow, establishing a micro-corporation can be a strong ally in keeping your social insurance premium burden low.

However, when a company is just starting out, many people face the burden of costs for professionals.For example, in cases where you sign an advisory contract with a tax accountant, it can cost several hundred thousand yen per year.

As repeatedly taught in Ryo-gakucho's lectures, even though you created a small corporation to keep social insurance premiums down, it is meaningless if you end up in the red due to high maintenance costs for professionals.

Of course, if your annual profit reaches the tens of millions of yen scale, or if you are at a stage where you want to 'outsource all troublesome paperwork so you can focus 100% on growing your core business,' then hiring a tax accountant is the right choice.

However, in the initial phase of operation where there are only a few transactions per month, it is well worth considering the option of 'trying it yourself' before paying high fees. This is because compared to hiring a tax accountant for an advisory contract, doing your own tax returns can result in a cost difference of several hundred thousand yen per year.

Understanding the company's structure yourself and thoroughly cutting out unnecessary fixed costs is the first step to keeping control of your household and business firmly in your own hands.

2. The 4 steps to completing your own tax returns, as discovered through researching 'Zenryoku Hojinzei'

So, how does a beginner with no tax expertise complete those complex corporate tax returns? After thoroughly researching the official website and the records of actual users, I found that the procedure is designed to be surprisingly simple.

Here are the 4 concrete steps to completing your tax returns yourself.

• Step 1: Export data from accounting software

  1. Download one year's worth of data as a CSV file to your computer from the accounting software (such as Money Forward or freee) where you enter your daily sales and expenses.

• Step 2: Import data into Zenryoku Hojinzei

  1. Import that CSV data directly into the 'Zenryoku Hojinzei' site. Then, follow the on-screen instructions to enter basic information such as your company's address and fiscal year.

• Step 3: Answer on-screen questions for automatic calculation

  1. This is the software's greatest strength. It asks easy-to-understand questions like 'Did you buy new equipment like a computer this year?' or 'Please enter the amount of corporate inhabitant tax paid,' so you just enter the numbers you have on hand. Complex tax return documents (such as separate schedules) that an amateur could never handle are automatically created in the background in an instant.

• Step 4: File electronically from home with one button

  1. Download the completed tax return data and link it to the national electronic filing system (e-Tax). By simply scanning your My Number card with your smartphone, you can complete the entire submission to the tax office while at your office or home.

Looking at actual user experiences, for a micro-corporation, it seems that in many cases, the process from entering data into the software to sending the final electronic tax return takes about 3 hours in total to complete. The point where people get most confused is 'where to enter local taxes (the per-capita rate of corporate inhabitant tax),' but there is a system in place to resolve this quickly by checking the help screen within the software or searching the past logs of the 'Micro-Corporation Consultation Chat' in LibeCity.

I personally plan to actually test this process after establishing my corporation and write an article about the results.

3. Criteria for deciding whether to 'do it yourself' or 'buy time,' and preparations you can start now

I have explained the flow of doing your own tax returns, but there is one important perspective to keep in mind at the end. That is, the stance you should take changes depending on the scale of your business and your own 'hourly rate (the value of your own hour).'

Doing your own tax returns is a very effective cost-cutting measure when your sales and expense transactions are simple and you still have time to do the work yourself.

However, if your business grows and transactions become complex, or if you reach a stage where the value of your own hour far exceeds the cost of a tax accountant, it is the best decision to happily entrust those tasks to a reliable professional tax accountant and buy back your time.

The important thing is not to be swayed by the common sense of those around you that 'outsourcing everything is the norm,' but to have the discipline to judge for yourself what is most rational at your current stage.

Currently, in my household, we are building a foundation of tens of millions of yen in assets (quasi-wealthy level) centered on investment trusts linked to global economic growth. As I approach retirement age in a few years, I am preparing for a time-rich, multi-base lifestyle where I can truly immerse myself in 'academics,' 'art,' and 'faith' that I have been looking forward to.

The reason I am currently studying for the Nissho Bookkeeping Level 3 exam and inputting the basics of journal entries into my brain is all part of the preparation calculated backward from this future exit strategy of 'controlling the company myself.'

By identifying fixed costs and future maintenance costs in advance, I have gained not only financial benefits but also a great sense of security in being able to properly understand and operate the company myself. Let's visualize invisible costs and firmly regain control of our money and time!

Thank you for reading until the end.

Why don't you also start the following 'Review of the Future of Your Own Corporation (Homework)' starting today?

1. Open the official website of 'Zenryoku Hojinzei' and read one experience story from seniors who are doing their own tax returns for their micro-corporations.

2. Write down in a notebook the sales scale criteria for when you become independent in the future, deciding whether you are in the 'phase of doing tax returns yourself using tools' or the 'phase of outsourcing to a tax accountant.'

3. To build the basic physical strength to read and understand company numbers yourself, check the order of 'assets, liabilities, and net assets' in a Bookkeeping Level 3 textbook.

I will also continue studying for the Bookkeeping Level 3 exam and prepare little by little for future corporate establishment. I hope this article is helpful to those who are starting their preparations in the same way.

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