How to choose a fiscal year for business?
How to choose a fiscal year for business? A fiscal year, typically also known as the financial year or tax year or accounting year, consists of a twelve-month time frame that your accountant and the tax authorities (IRS) refer to for your financial reporting when you don’t adopt the conventional calendar year reporting. A calendar year commences and ends from 1 st January to 31 st December. However, a fiscal year is determined by you, so long as it is a twelve-month period. In this article, we shall evaluate how to determine selection of a fiscal year for your business, also how your choice can affect your business and whether you would be better applying a calendar year only. Traditionally, any small business would use a fiscal year for financial reporting for a couple of reasons primarily, firstly because they are in the process of fund raising via investments or loans and secondly, they are to file their first tax reporting and have the option to register a...