Which Types of Documents Do I Need to Store?

3-4 min read

Let’s begin by impressing the point that the real goal here is to be able to retrace your financial steps… and for an auditor to do so. As such, you need to leave the right trail that is straightforward to review. So then the question is: which types of document do I need to store?

The short answer: anything that officially tells the story of what goes in and what goes out.

The Digital Documentation Mandate

Let’s talk about what seems to be a simple rule but is, in fact, a cornerstone of compliance: Documents that are issued electronically (think emails, e-invoices) need to live in their original digital form. This isn’t just a recommendation; it’s a regulatory necessity.

The Atlas of Essential Digital Documents

Charting this course requires a detailed map. Here are the types of document that belongs in your digital ledger:

Invoices: Not just transactions, but stories of your business exchanges.
Receipts: Tiny yet vital anchors in your financial narrative.
Purchase Orders: The plotted routes from need to fulfillment.
Contracts: These are the treaties of your business relationships.
Term Sheets: Each a chapter in your enterprise’s journey.
Bank Statements: They are the tides and currents of your financial seas.
Electronic Correspondences: Emails and messages, often overlooked, yet they hold the potential to alter your course significantly.
Digital Financial Statements: They tell your startup’s fiscal story with precision and clarity.
E-tax Returns: These are not just regulatory necessities; they are annual chronicles of your business’s economic decisions.

The Art of Digital Preservation

Storing these isn’t just an act of compliance; it’s an art. It’s about weaving these digital threads into the fabric of your business’s narrative in Japan. Each document, securely timestamped and stored, is a testament to your business’s journey and integrity.

Disclaimer: While this guide provides an overview, it’s vital to follow the NTA’s rules and seek professional advice to navigate these waters accurately.

Beyond the Horizon: The Challenge of Self-Navigation

Crafting an in-house solution to manage this array of digital documents? It’s like building a ship while already at sea. The challenge isn’t just technological; it’s about aligning with the stringent and precise standards set forth by Japan’s legal and business environment.

A Timely Reminder

Remember, the rules aren’t on the horizon; they’re here. The time for preparation has passed, and the time for action is now. For foreign SMEs, this isn’t just about getting things right; it’s about survival in the compliance waters of Japan.

In Conclusion

In this digital age, storing your electronic documents is akin to charting a course for your business’s future. It’s a narrative, a ledger, a map – all rolled into one.

Any document generated electronically such as emails, e-invoices, and other digital financial documents must be preserved in its original digital format according to Japanese regulatory standards.

Take action without delay. The deadline for compliance has elapsed, and the regulations are in effect. SMEs, particularly those that are foreign-owned, need to implement dependable digital storage solutions that comply with national regulations to prevent penalties and guarantee their continued existence in Japan’s market.

The main goal is to establish a transparent, verifiable financial record. Your electronic documents should enable both you and auditors to effortlessly track all financial transactions, guaranteeing transparency and adherence to regulations.

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