Fiscal Year
A Fiscal Year refers to the 12-month period utilized for accounting and reporting the financial transactions of a firm.
Also known as a financial or budget year, it's employed for financial statement preparation of firms and other enterprises. A Fiscal Year may be identical with the calendar year or vary, as per the preference of the company and local requirements.
Firms can adopt the calendar year (January-December) or opt for a different 12-month period, as per the tax regulations in a nation. Most authorities ask firms to provide financial results once a twelve-month period, but they do not always dictate that it should coincide with the calendar year.
Usually, a Fiscal Year starts on a quarter start date like April 1, July 1, or October 1. But for ease, a lot of companies still set it to January 1. But there are times when beginning on a different date is more convenient.
For instance, seasonal enterprises may select July 1 or October 1 as the Fiscal Year beginning. An enterprise that gets majority of its revenues during fall and incurs majority of its expenses during spring can select October 1 as the Fiscal Year starting date. This facilitates them in aligning income and expenses more and controlling profits more efficiently.
To access fiscal year, go to:
1. How to Create the Fiscal Year
Visit the Fiscal Year list.
Give the fiscal year a clear name before choosing or creating it.
- For instance: If the financial period begins in 2025 and end in 2026, type "2025-2026."
3- Check the "Disabled" box if you do not want this fiscal year to be active. If you wish to use this fiscal year for reports and transactions, leave it unchecked.
4- Only select "Is Short/Long Year" if your fiscal year is not precisely twelve months long.
- For instance: Choose this option if your company was founded in the middle of the year or if you're closing your books early because of restructuring.
5- To specify the start of your fiscal year, enter the Year Start Date.
- For instance: If your fiscal year begins on April 1, 2025, use 01-04-2025.
6- To determine the end of your fiscal year, enter the Year End Date.
- For instance: To end the year on March 31, 2026, type 31-03-2026.
7- Select the company to which this fiscal year applies under the Companies section.
- For instance: Choose M & J (Demo) if that is the business for which you are establishing the fiscal year.
8- Click Add Row and select more companies if you wish to assign this fiscal year to more than one.
9- To save the fiscal year in the system after everything has been filled out accurately, click the Save button in the upper right corner.
