Guideline for Correct Accounting in the Transportation Business
Greenbell Co., Ltd. has released the "Guideline for Correct Accounting in the Transportation Business (2026 Final Revision)" for free. This guideline systematically explains how accounting errors, especially regarding depreciation and tax accounting, lead to structural deficits in many Japanese small and medium-sized transportation businesses, hindering their growth despite diligent work. It provides methods for proper accounting, including segmenting sales and categorizing costs.
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- 📰 Published: April 27, 2026 at 22:00
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The major challenge to avoid is the structural deficit wall: depreciation and tax accounting.
In Japan's tax system, the legal useful life for vehicles (trucks) is stipulated to be 3-5 years. However, actual trucks, with proper maintenance, can operate for more than 10 years, and in some cases, over 15 years. This discrepancy between 'legal useful life' and 'economic useful life' is one of the biggest factors causing structural deficits in the profit and loss statements of transportation businesses.
This structural deficit significantly hinders the growth of transportation businesses, as depreciation deficits forcibly turn inherently profitable businesses into deficit-ridden ones.
Correct Accounting Procedures Required by the Road Transport Act
Transportation businesses are obligated to report their business status to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) after their financial closing, and the submission of financial statements is part of this. MLIT collects financial statements from each transportation business, aggregates them, and publishes the average sales and costs by area and number of vehicles for transportation businesses nationwide. However, the accounts for transportation businesses prepared by tax accountants and certified public accountants vary widely, and some financial statements even lack a manufacturing cost report. By unifying the account recognition through the accounting guideline, MLIT's aggregated data will become more accurate, and organizing accounts is essential for comparing transportation businesses with the national average. To standardize this, we are releasing the journalizing guidelines.
Correct Accounting Step 1: Record Sales by Segment
Importance of Segment Classification
The first practical step in accounting for transportation businesses is to classify sales by business. The expression 'coloring sales' is appropriate; to individually evaluate the profitability of each business unit, classification into the following five segments is fundamental. It is not acceptable to collectively record manufacturing costs across segments.
Segments
Content
① Transportation Business
Cargo transport by own trucks and drivers
② Utilization Transport Business
Outsourced transport to other transporters
③ Warehouse Business
Storage and management of goods
④ 3PL Business
Value-added logistics services such as sorting, packing, and labeling
⑤ Others
Ancillary businesses not classified above
Correct Accounting Step 2: Divide Transportation Business into 7 Cost Categories
Definition of 7 Account Groups and Industry Averages
The manufacturing costs of transportation businesses are managed by classifying them into the following seven important account groups. This classification system is designed to visualize transportation costs and facilitate comparison with industry average values.
Cost Category
Main Accounts
Industry Average Guideline
Management Points
① Personnel Costs
Driver salaries, statutory welfare expenses, welfare expenses, training expenses
38-42%
Personnel costs including social insurance premiums
② Fuel Costs
Fuel costs, light oil volatile tax, gasoline tax
14-17%
Includes fuel and light oil tax, etc. (do not separate)
③ Vehicle Costs
Depreciation expenses, lease fees
12-16%
Depreciation based on economic useful life is preferable, not tax useful life
④ Insurance Premiums
Voluntary automobile insurance, cargo insurance
3-5%
Covers voluntary liability insurance and cargo insurance
⑤ Repair Costs
Maintenance costs, tires, parts, compulsory automobile liability insurance, automobile taxes
4-8%
Compulsory automobile liability insurance and automobile taxes are included in this account group
⑥ Toll Road Usage Fees
ETC usage fees, ferry usage fees
4-6%
Travel and transportation expenses are NOT allowed here
⑦ Selling, General and Administrative Expenses
Executive compensation, clerical staff, rent, communication fees, utility costs, etc.
15-18%
All other expenses are included here
Most Important Point in Vehicle Depreciation - Application of Economic Useful Life
Discrepancy between Legal Useful Life and Economic Useful Life
The most important point in this article is the selection of useful life for vehicle (truck) depreciation. Under tax law, the legal useful life for ordinary freight vehicles is stipulated to be 4-5 years. This is a "maximum speed" standard that allows for the fastest possible depreciation for tax reporting purposes and does not reflect the actual economic situation.
Category
Legal Useful Life
Average Actual Usage Life
Residual Value (at 10 years)
Discrepancy Ratio
Large Truck (Ordinary Vehicle)
4 years
Approx. 12-15 years
30-50% of purchase price
2.4-3.0 times
Medium Truck (Small Vehicle/Freight)
5 years
Approx. 10-12 years
25-40% of purchase price
3.3-4.0 times
Trailer
4 years
Approx. 15-20 years
40-60% of purchase price
3.75-5.0 times
Source: Legal useful life from Corporation Tax Law Enforcement Order Annex 1, Actual usage life and residual value from All Japan Truck Association survey and used truck market transaction data (2022).
Impact of Useful Life Selection on Profit and Loss
Using a new truck purchase price of 20 million yen (residual value 2 million yen, depreciable amount 18 million yen) as an example, legal useful life and economic.
In Japan's tax system, the legal useful life for vehicles (trucks) is stipulated to be 3-5 years. However, actual trucks, with proper maintenance, can operate for more than 10 years, and in some cases, over 15 years. This discrepancy between 'legal useful life' and 'economic useful life' is one of the biggest factors causing structural deficits in the profit and loss statements of transportation businesses.
This structural deficit significantly hinders the growth of transportation businesses, as depreciation deficits forcibly turn inherently profitable businesses into deficit-ridden ones.
Correct Accounting Procedures Required by the Road Transport Act
Transportation businesses are obligated to report their business status to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) after their financial closing, and the submission of financial statements is part of this. MLIT collects financial statements from each transportation business, aggregates them, and publishes the average sales and costs by area and number of vehicles for transportation businesses nationwide. However, the accounts for transportation businesses prepared by tax accountants and certified public accountants vary widely, and some financial statements even lack a manufacturing cost report. By unifying the account recognition through the accounting guideline, MLIT's aggregated data will become more accurate, and organizing accounts is essential for comparing transportation businesses with the national average. To standardize this, we are releasing the journalizing guidelines.
Correct Accounting Step 1: Record Sales by Segment
Importance of Segment Classification
The first practical step in accounting for transportation businesses is to classify sales by business. The expression 'coloring sales' is appropriate; to individually evaluate the profitability of each business unit, classification into the following five segments is fundamental. It is not acceptable to collectively record manufacturing costs across segments.
Segments
Content
① Transportation Business
Cargo transport by own trucks and drivers
② Utilization Transport Business
Outsourced transport to other transporters
③ Warehouse Business
Storage and management of goods
④ 3PL Business
Value-added logistics services such as sorting, packing, and labeling
⑤ Others
Ancillary businesses not classified above
Correct Accounting Step 2: Divide Transportation Business into 7 Cost Categories
Definition of 7 Account Groups and Industry Averages
The manufacturing costs of transportation businesses are managed by classifying them into the following seven important account groups. This classification system is designed to visualize transportation costs and facilitate comparison with industry average values.
Cost Category
Main Accounts
Industry Average Guideline
Management Points
① Personnel Costs
Driver salaries, statutory welfare expenses, welfare expenses, training expenses
38-42%
Personnel costs including social insurance premiums
② Fuel Costs
Fuel costs, light oil volatile tax, gasoline tax
14-17%
Includes fuel and light oil tax, etc. (do not separate)
③ Vehicle Costs
Depreciation expenses, lease fees
12-16%
Depreciation based on economic useful life is preferable, not tax useful life
④ Insurance Premiums
Voluntary automobile insurance, cargo insurance
3-5%
Covers voluntary liability insurance and cargo insurance
⑤ Repair Costs
Maintenance costs, tires, parts, compulsory automobile liability insurance, automobile taxes
4-8%
Compulsory automobile liability insurance and automobile taxes are included in this account group
⑥ Toll Road Usage Fees
ETC usage fees, ferry usage fees
4-6%
Travel and transportation expenses are NOT allowed here
⑦ Selling, General and Administrative Expenses
Executive compensation, clerical staff, rent, communication fees, utility costs, etc.
15-18%
All other expenses are included here
Most Important Point in Vehicle Depreciation - Application of Economic Useful Life
Discrepancy between Legal Useful Life and Economic Useful Life
The most important point in this article is the selection of useful life for vehicle (truck) depreciation. Under tax law, the legal useful life for ordinary freight vehicles is stipulated to be 4-5 years. This is a "maximum speed" standard that allows for the fastest possible depreciation for tax reporting purposes and does not reflect the actual economic situation.
Category
Legal Useful Life
Average Actual Usage Life
Residual Value (at 10 years)
Discrepancy Ratio
Large Truck (Ordinary Vehicle)
4 years
Approx. 12-15 years
30-50% of purchase price
2.4-3.0 times
Medium Truck (Small Vehicle/Freight)
5 years
Approx. 10-12 years
25-40% of purchase price
3.3-4.0 times
Trailer
4 years
Approx. 15-20 years
40-60% of purchase price
3.75-5.0 times
Source: Legal useful life from Corporation Tax Law Enforcement Order Annex 1, Actual usage life and residual value from All Japan Truck Association survey and used truck market transaction data (2022).
Impact of Useful Life Selection on Profit and Loss
Using a new truck purchase price of 20 million yen (residual value 2 million yen, depreciable amount 18 million yen) as an example, legal useful life and economic.