How have Accounting and Finance departments in Japan changed in the last 24 years?

Perhaps like many, I still consider myself young, even though I am now 49 years old. When I started working in recruitment, we used to use fax machines. Really. Linkedin and Google Maps did not exist. Imagine that.

Accounting and finance will always be an essential part of any business and is in many ways recession proof. My 24 years of accounting and finance recruitment experience in Japan allow me to be able to explain what changes I have seen first-hand in accounting and finance departments in that period. Other than the fact that we now all have iPhones.

Accounting and Finance Teams departments are now more diverse.

Over the years, the FP&A function in particular has become more internationally diverse.? In the 2000s, it was rare to meet FP&A candidates who were not Japanese.? There are now FP&A professionals from a very wide range of countries in Japan - originating from different countries in Europe, Asia, The Americas, ANZ and Africa.? They can be found in a very wide range of company sizes, industries and locations in Japan, not just the Tokyo region.? Often a key responsibility of the FP&A function involves management reporting to stakeholders in Asia Pacific or HQ countries, so being capable of operating in more than two languages can be advantageous.? Many studied at a Japanese University and decided to stay in Japan to build a career and life.? Often these young FP&A professionals are working in a factory miles from big cities like Tokyo, Nagoya or Osaka.? Some were sent to Japan from their HQ to learn the ropes.? Some were recruited from their University campus by a big Japanese OEM and their first role in Japan involves them being in HQ communicating with subsidiaries overseas. Some grew up in their home countries with a dream to live in Japan.

General Accounting roles are very hard to fill.

Demand for bilingual accounting managers and senior accountants is typically always very high but unfortunately for client companies there is a major candidate supply challenge in this area and these roles now take a long time to be filled.? It is not uncommon to hear of clients having an accounting manager role open for a year and this did not used to be the case in the 2000s.? Japanese language skills are often required for general accounting roles for communication with audit firms, tax authorities and other local authorities so it is harder to bring international talent in to this area.? Due to the shrinking population, there are less Japanese candidates available than in the 2000s. As a result client companies are now very flexible on age and are open to hiring candidates in their mid to late 50s on a permanent basis and over 60s on a temporary basis.

Turnover - too much or not enough?

There are still many accounting and finance departments in foreign companies in particular who suffer with too much staff turnover.? Often these companies have always suffered from high staff turnover due to legacy ERP related systems issues, lack of investment in the finance function or lack of strong leadership skills in the finance function.? Even with hybrid work styles and improved technology, accounting and finance candidates often want to leave their role due to working too much overtime or suffering from "power harrassment".?

On the other hand, there are many foreign companies in Japan who do not have enough staff turnover.? It is still common for a newly hired Finance Director to inherit an accounting and finance function where employees have been doing the same roles in the same way for twenty years.? Often the new Finance Director will want to make processes and systems more efficient but can be met with firm resistance from team members.? This can create an unproductive work environment and an accounting and finance function that cannot effectively change, a frustrated Finance Director and a frustrated legacy team.

Feel free to get in touch with me to talk in detail about how we can help you with Japan accounting and finance challenges. Tea or coffee preferred to a video meeting of course.

And as we approach 2025, you can access our 2025 Salary Guide here.