In Accounting some terms will be having the Synonyms and likewise the Accounting Term Financial Year also having some words like Fiscal Year, Natural Business Year and we will be discussing more about it here.
As the word says Financial Year mean the information related to Money, or Moneys worth the term Financial or Budget Year refers information about the a complete year about financial information about a particular entity, organization or firm.
A Financial Year sometimes also called as Budget Year and it is a period of a Year or 12 consecutive Months or 52 to 53 consecutive Weeks or 355 to 356 consecutive Days of an organization’s activities. And it is used for calculating annual Financial Statements and Taxation require such reports once per twelve consecutive months, but it is not mandatory that the period would be a Calendar Year i.e. 1 January to 31 December. It varied between business and countries. The Fiscal Year may also refer to the year used for Income Tax Reporting.
A Natural Business Year is a period of 12 consecutive months, terminating in a natural low point in the sales activity of a business. The natural business year is an ideal choice, Since the natural low point at the end of the period should coincide with a decline in the accounts receivable, accounts payable, and inventory that a business states in its accounting records.
The term Fiscal Year is associated with Companies having Financial Reporting year that do not end on December 31. And this is about some Financial Year terms explained in accounts and it would be an appreciation if you have any additional input provided in this connection in the comment section below.
GST TAX CONSULTANT SERVICE
TRY OUR HASSLE FREE GST FILING SERVICE
All your GST Tax Complains are handled by our Tax Experts