I’m a sole proprietor here in Japan, being paid USD. I’ve currently got multiple bank accounts, two in the US, two in Japan, and also WISE. My previous method of moving money around was to get paid into WISE, then send a portion of that USD to my home bank in the US, and send the remainder to my Japanese bank. That Japanese bank account was then used for BOTH personal and business related expenses. I’m looking to simplify my banking situation and get a handle on the best way to move money between accounts so that when tax time comes again I’m not so stressed trying to figure out how to track down payments, etc.
I’ve since got another bank account in Japan with Sony Bank that I plan to begin using as my ‘personal’ JPY account. The other is Resona, which I will use for any business related expenses.
I also would like to send money back to my US bank or pay down my US credit card.
I’m wondering what the best way to do this is.
My current thinking is to send ALL of my USD paycheck, which is currently sent to my Wise USD account, to my Resona (business related) account. From there I will send a portion back to Wise USD to pay down my US credit card with. I will also send another portion to my Sony account (personal). The remainder will remain in Resona to be used for business related expenses.
Is this a good strategy when it comes to taxes? I’d like to take advantage of software like Freee that could automatically keep track of these transfers to and from my Resona so that the double-entry bookeeping and other things are mostly taken care of. Is the plan of sending my full paycheck(s) to my Resona account via Wise first a good plan? If not, how do you suggest I alter how I’m moving money between accounts?
Thanks in advance!
by KatKack