TOKYO -- Tax accounting expenses are rising in Japan as growing numbers of freelancers and those with second jobs mean more people are required to file tax returns.

Meetsmore Inc., based in Tokyo's Chuo Ward, which operates an expert-matching service, analyzed the most recent three years of tax accountant fees ahead of the tax season in February and March. According to the company, it is best to aim to prepare tax returns in January, when the fees for such services are lower.

The company surveyed estimated accounting expenses for tax declarations through the Meetsmore site between 2022 and 2024 -- about 175,000 tax returns in total. It found that expenses grew by 5% year-on-year from 2022 to 2023, and another 8% the year after.

Weekly figures between December 2023 and March 2024 showed expenses stayed around the same until the end of January, but began to rise in early February ahead of the start of tax filing season in the middle of the month. The figures peaked from the fourth week of February through the second week of March, ahead of the deadline for submitting tax returns. Expenses listed over this period were roughly 1.4 times higher than in the fifth week of January.

What are the estimated costs for the services of tax accountants? The median figures in 2024 differ according to industry, annual sales and other factors. For businesses with annual sales under 3 million yen (roughly $19,200), the charge across all industries was around 100,000 yen (some $642). Once annual sales hit the 50-million-yen (approx. $320,000) threshold, fees hovered between 200,000 and 300,000 yen for the construction and engineering industries and around 400,000 to 500,000 yen for companies in finance.

The peak for ordering tax accountants' services occurs in the third week of January. Because some professionals discontinue taking orders early, Meetsmore advises people to finish their consultations by the end of January.

(Japanese original by Yuko Shimada, Business News Department)