Many Japanese subsidiaries based in the U.S. are expanding their business. As sales increase, business partners diversify, and employee numbers grow, there comes a point where manually handled accounting and finance tasks begin to reach their limits. In this growth phase, automating financial workflows becomes crucial. This article introduces, from a practical perspective, the business areas suitable for automation, specific tools, and points to consider when implementing them.
Why is “Automation” Necessary?
Due to the recent labor shortage, it is increasingly difficult to secure sufficient personnel in accounting departments. Common issues heard on the ground include:
- Inability to keep up with invoice processing
- Many errors in expense reporting, requiring significant time for checks
- Delays in monthly closing
- Reports take a lot of time to prepare
Many of these challenges can be significantly improved through workflow automation.
Automation also brings additional benefits beyond time savings:
- Error reduction: Prevents human errors and missed entries
- Fraud prevention: Approval histories based on rules make fraud less likely
- Faster decision-making: Timely visibility of numbers enables quicker business decisions
The benefits of automation go beyond saving time. It allows the finance department to evolve from a “record-keeping unit” to a “strategic support unit.”
Key Financial Tasks to Automate
The following accounting tasks are considered particularly effective for automation:
1. Accounts Payable
- OCR scanning of vendor invoices
- Rule-based approval workflows (e.g., orders over $5,000 require manager approval)
- Automatic execution of payment schedules and journal entries
2. Expense Management
- Employees capture and submit receipts via smartphone
- Automatic policy violation checks (e.g., meals over $100 per person)
- Automatic journal entry integration with accounting systems
3. Monthly Closing Process
- Visualization of account balance checklists
- Template-based bulk report generation
- Automated profit and loss display by department or project
Recommended Tools and Features
Popular tools introduced in Japanese subsidiaries include the following:
| Tool | Main Use | Features |
|---|---|---|
| Sage Intacct | General accounting | ERP software. Strong multi-currency and department-level analysis |
| Bill.com* | Payment approval | Strong in managing approval routes and accounting integration |
| Expensify / Concur / Nexonia* | Expense management | Mobile-compatible, workflow automation |
| Microsoft Power Automate | General automation | Integrates with other tools for notifications and file processing |
*These tools can function independently, but integrating them with an ERP system maximizes their benefits.
Points to Consider When Implementing
Workflow automation does not automatically bring benefits upon installation. Consider the following points:
- Inventory existing processes first: Automating unnecessary tasks will not yield effective results.
- Gain consensus from local staff: Staff unfamiliar with the tools may resist change.
- Align with headquarters: Design workflows to integrate with the Japanese HQ’s accounting processes and reporting formats.
In Conclusion
For Japanese subsidiaries in the U.S. to achieve sustainable growth, improving financial processes is essential. This requires workflow automation to handle tasks systematically, rather than simply increasing personnel.
At CDH, we support Japanese companies’ U.S. subsidiaries in improving operations and implementing systems. If you are considering reviewing your accounting and finance setup with future growth in mind, please feel free to consult with us.
For questions or consultations: Contact us anytime
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