Hi I want to know, When a company s accounting year-ends on a day that is other than the end of the calendar year what is called in accounting?
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Hi,
The reason that a company's fiscal year often differs from the calendar year and may not close on December 31 is due to the nature of a company's needs. For example, retailers tend to close their books at the end of January due to the large number of December sales. If the fiscal year-end is too close to a heavy selling season, the company will be hard-pressed to produce its annual financial statements, count inventories, etc. because its manpower will be going toward selling its product.
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The reason that a company's fiscal year often differs from the calendar year and may not close on December 31 is due to the nature of a company's needs. For example, retailers tend to close their books at the end of January due to the large number of December sales. If the fiscal year-end is too close to a heavy selling season, the company will be hard-pressed to produce its annual financial statements, count inventories, etc. because its manpower will be going toward selling its product.
**DEFINITION of 'Fiscal Year-End'**
The completion of a one-year, or 12-month, accounting period. A firm's fiscal year-end does not necessarily need to fall on December 31, and can actually fall on any day throughout the year.
**BREAKING DOWN 'Fiscal Year-End'**
The reason that a company's fiscal year often differs from the calendar year and may not close on December 31 is due to the nature of a company's needs. For example, retailers tend to close their books at the end of January due to the large number of December sales. If the fiscal year-end is too close to a heavy selling season, the company will be hard-pressed to produce its annual financial statements, count inventories, etc. because its manpower will be going toward selling its product.
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DEFINITION of 'Fiscal Year-End'
The completion of a one-year, or 12-month, accounting period. A firm's fiscal year-end does not necessarily need to fall on December 31, and can actually fall on any day throughout the year.
BREAKING DOWN 'Fiscal Year-End'
The reason that a company's fiscal year often differs from the calendar year and may not close on December 31 is due to the nature of a company's needs. For example, retailers tend to close their books at the end of January due to the large number of December sales. If the fiscal year-end is too close to a heavy selling season, the company will be hard-pressed to produce its annual financial statements, count inventories, etc. because its manpower will be going toward selling its product.