Fiscal vs calendar year.

[Androidpk]

What is the point of businesses using a fiscal calendar year? Are there any benefits to it?

[Delias]

What is the point of businesses using a fiscal calendar year? Are there any benefits to it?

Its based on weeks which are concrete measurements as opposed to months which are arbitrary lengths?

[NocturnalRob]

Seasonal benefits, startup benefits, benefits on employee bonuses.

It makes sense for certain businesses who know they will incur losses initially to take those losses in a "short year" (say July 2011 to October 2011), especially if they believe they will be profitable in their second "year" (October 2011 to October 2012). This allows them to defer any tax liability to the second year.

That's just one example.

[Delias]

Also, my wife found this old nyquil which still retains the trippy awesomeness of cold killing power!

[Androidpk]

Seasonal benefits, startup benefits, benefits on employee bonuses.

It makes sense for certain businesses who know they will incur losses initially to take those losses in a "short year" (say July 2011 to October 2011), especially if they believe they will be profitable in their second "year" (October 2011 to October 2012). This allows them to defer any tax liability to the second year.

That's just one example.

Any websites that go into detail in all of this?

[DoctorUnne]

Is your question why do some businesses use a fiscal year that is not the same as the calendar year?

[Androidpk]

Is your question why do some businesses use a fiscal year that is not the same as the calendar year?

Pretty much. Why do they do it and what are the advantages.

[ZeP]

If you haven't found a site by now it must be completely unknown. Good luck.

[Bobmuhthol]

Most businesses are in the middle of a trend between December and January and it simply makes more sense to make their fiscal year end at the same time that revenue growth generally changes direction. It doesn't make sense to have to deal with the bullshit of closing books at potentially your busiest time of the year.

[Wyrmx]

In our case, we mirror our fiscal year end with the Government's...30 September. It makes following contracts and quarterly billables easier because we speak the same language technically.

[DoctorUnne]

Most common is retailers ending in January or March so they incorporate the returns season into their year and aren't closing the books during their busiest time. Education companies typically mirror the school year and have FYEs of June. Defense companies adjust to match the procurement and budgeting timelines of the government. Those are the common industries that I can think of.

I like it because it spreads earnings season out a little bit but it can make it a pain to compare to other companies.

[Androidpk]

Good to know. Thanks for the quick responses, presentation was a sexcess.

[NocturnalRob]

presentation was a sexcess.
But was it "great?"