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Fiscal calendar is used to represent a financial year.The fiscal year is actually just a date of reference for all the accounting works of a firm. The fiscal years are divided into twelve months for calculating the statements of expenditure, profits and losses and other subjects of financial importance for a business organization. Businesses in every part of the world are governed by certain laws which itself determines the date of completion of accounting works. A copy of this accounting work is important not only for the business organization but also for the government and the shareholders of the company.
Disparity of Fiscal Calendars from other Calendar Systems:
A great deal of disparity is prevalent in the fiscal calendar as compared with the English calendar. This is chiefly done so that the huge works of accounting need not be done during rush times and periods of other special importance. The fact that most business firms have higher level of taxes, profits and expenditure during month of December, over that in other months, that makes December a lesser favorable month for completing works of a fiscal calendar. In many a country, the month of September and March are taken as the end month of a fiscal calendar year.
Importance of Fiscal Calendars:
The importance of a fiscal calendar cannot be doubted as it affects every person of each of the countries in the world. The fiscal calendar is not only important for business organizations but instead holds special importance for other institutes like colleges and schools, as well.
Characteristics of Fiscal Calendar:
The fiscal calendar is generally represented as FY. For example "FY07" indicates the financial calendar year 2006-07. The fiscal calendar is further divided into 4 quarters each lasting for a period of three months. In many countries such as India, the business organizations do need to declare their result at the end of every quarter of the fiscal calendar year. The annual returns are declared at the end of one of these quarters which signifies the end of the financial calendar year. As discussed earlier this is often decided by the government and laws prevalent in the country of business' operation. |
