1 Million Yen Annual Consulting Fees: Will You Continue to Pay?

AI agents have autonomously built open-source tax software capable of processing U.S. tax returns (Form 1040). This was not designed by humans; the AI read tax laws, wrote code, tested it, and completed it as functioning software.

Many might dismiss this news as merely relevant to the U.S. However, the essence lies elsewhere: the cost of converting specialized knowledge into code is approaching zero.

Consulting fees for tax accountants range from 300,000 to 3 million yen per year. Legal contract reviews by lawyers cost between 50,000 to 300,000 yen per case. These prices have been sustained by the “scarcity of specialized knowledge.” That scarcity is beginning to dissolve due to open-source AI agents.

For small and medium-sized enterprises (SMEs) in rural areas, this is not just someone else’s issue; they are in a position to receive the greatest benefits.

What Happened?—AI Agents Created Their Own “Tax Software”

First, let’s clarify the facts.

An AI agent (a system based on large language models that autonomously breaks down and executes tasks) has built tax calculation software for the U.S. individual income tax return Form 1040 from scratch. It interpreted tax law provisions, designed calculation logic, implemented it as Python code, and validated it through test cases—all in a consistent manner.

Importantly, the resulting product is available as open-source. This means anyone can use it for free and make improvements.

Traditionally, developing such tax software required specialized teams of tax accountants and engineers, with development costs running into tens of millions of yen. Now, one AI agent can complete this in a matter of hours to days. The cost structure has fundamentally changed.

Is “300,000 Yen Work for Free” an Exaggeration?—Let’s Think in Numbers

Let’s take a look at the typical consulting fees paid by Japanese SMEs to tax accountants.

• Monthly Consulting Fee: 20,000 to 50,000 yen (240,000 to 600,000 yen annually)
• Final Tax Return Fee: 150,000 to 300,000 yen
• Year-End Adjustment and Legal Documents: 50,000 to 100,000 yen
• Total: 500,000 to 1,000,000 yen is a common range

For larger businesses, it can exceed 2 to 3 million yen annually.

So, what does this 1 million yen consist of? Broadly, it can be divided into three categories:

1. Bookkeeping and Journal Entry Processing (routine tasks)
2. Judgments and Tax Return Preparation Based on Tax Law (specialized knowledge)
3. Management Consulting and Tax-saving Advice (interpersonal consulting)

The AI agent is primarily replacing categories 1 and 2. Bookkeeping has already been significantly automated by services like freee and Money Forward. If AI can autonomously handle “interpretation of tax law and preparation of tax returns,” then the value of routine tasks, which account for 60-70% of consulting fees, will drop to almost zero.

For companies paying 1 million yen annually, this means savings of 600,000 to 700,000 yen. This amount is equivalent to the labor cost of one part-time employee for SMEs in rural areas.

Of course, there are still areas where human tax accountants are needed for category 3, “advice related to management decisions.” However, conversely, it raises the question: how much of the 1 million yen paid to tax accountants is actually for work that can only be done by humans?

Not Just Taxation—The Impact Will Extend to Lawyers, Labor and Social Security Attorneys, and Administrative Scriveners

The structural change is not limited to taxation.

In the legal industry, AI contract review is already at a practical stage. A survey by a U.S. legal tech company found that after the introduction of AI tools, the time required for contract reviews was reduced by an average of 60-80%. In Japan, services like LegalForce and AI-CON are beginning to gain traction.

Traditionally, when SMEs requested contract reviews from lawyers, it cost between 50,000 to 150,000 yen per case. If they request 10 cases a year, that amounts to 500,000 to 1,500,000 yen. Monthly fees for AI review tools are around several thousand yen, so it’s not uncommon for annual costs to drop to less than one-tenth.

Labor and Social Security Attorney services are similar. Payroll calculations, social insurance procedures, and the creation of work regulations—these routine tasks are rapidly being automated through a combination of AI and cloud services.

Administrative scriveners’ licensing applications also benefit from AI’s strengths in document template generation and requirement checks.

In other words, a simultaneous and widespread “price collapse of routine tasks” is occurring across all professional services.

The Real Impact for SMEs—The Problem of Not Being Able to Afford Experts Will Be Resolved

Now, I want to shift perspectives.

While we have been discussing cost reductions, what is even more significant for rural SMEs is that the issue of “not being able to afford experts” will be resolved.

Let’s face reality. How many small businesses with fewer than 10 employees have a consulting lawyer? Almost none. Contracts are often read by the president, who stamps them with a casual “it should be fine.” Work regulations are often just templates found online. Tax matters are typically left to a tax accountant once a year for the final tax return, with zero tax perspective in daily management decisions.

The costs were too high to access expert services. This is the reality for rural SMEs.

If AI reduces the costs of professional services to one-tenth, it means that companies that could not previously afford experts will now have access to specialized knowledge for the first time.

While a monthly fee of 50,000 yen for a consulting lawyer may be out of reach, a monthly fee of 5,000 yen for AI contract review could be feasible. While an annual fee of 1 million yen for a tax accountant may be impossible, automating daily journal entries and tax checks with AI allows companies to consult a tax accountant only for truly critical decisions—this kind of usage will become possible.

This is not just about “cost reduction”; it’s about “democratizing capabilities”. SMEs will gain access to the functions of expert teams that large corporations have taken for granted through AI. A company with 10 employees in a rural area will be able to stand on the same level as large corporations regarding specialized knowledge. This change will have a significant impact precisely because they are SMEs.

So, What Should You Do Starting Today?

“I understand it’s impressive. So, what should I do?”

This is the most important part. Here are three suggestions.

1. Break Down Your Current Professional Service Costs

First, calculate how much your company pays annually to tax accountants, labor and social security attorneys, and lawyers in total. Next, divide that into “routine tasks” and “judgments and consultations.” The higher the proportion of routine tasks, the greater the potential for AI automation.

2. Try Cloud Accounting + AI Journal Entries

In the tax domain, make full use of the AI automatic journal entry features of freee or Money Forward. This alone will significantly reduce bookkeeping costs. Based on that, negotiate to switch your contract with your tax accountant from a “monthly consulting” to a “spot consultation”. You could potentially save 300,000 to 500,000 yen annually.

3. Try One AI Contract Review

Next time you have an opportunity to enter into a contract with a business partner, try using an AI review tool. Many services offer free trials. You’ll likely realize, “Wow, I didn’t know that risk clause was included.” Risks that were previously invisible will become apparent. Just that alone will demonstrate the value of using AI.

Will Professionals “Disappear”?—The Answer is No, But Their “Form” Will Change

To avoid any misunderstandings, let me clarify: tax accountants and lawyers will not disappear.

What will disappear is the “business model that relied on handling a large volume of routine tasks”. Conversely, tax accountants who can provide advice that delves into management decisions and lawyers who can foresee industry-specific risks—the value of experts who can truly provide “human-only value” will actually increase.

For SME managers, the correct approach is not to “replace all professionals with AI” but rather to “automate routine tasks with AI and use the savings to buy advice from truly excellent experts”.

Conclusion—What Will Happen After Costs Decrease

AI agents have autonomously built tax software. This is not just a technical demonstration.

It is a signal of a structural change where the cost of converting specialized knowledge into software is approaching zero.

Consulting fees for professionals will undoubtedly decrease over the next five years. The annual fee of 1 million yen will drop to 300,000 yen, and for routine tasks, it will approach zero.

For rural SMEs, this is not a crisis but an opportunity. They will gain access to specialized knowledge that was previously out of reach through AI. The information gap with large corporations will narrow.

The question is simple.

“How much does your company pay annually for professional services, and what percentage of that can be replaced by AI?”

Change will begin with managers who can answer this question.