Fiscal year

Fiscal year

There are businesses that follow the calendar year as their fiscal year.  That means their business year starts on January 1 and ends on December 31.  However, in NZ most businesses (I think) follow the normal fiscal year that starts on April 1 and ends on March 31.  The end of the fiscal year is not only an accounting exercise but also a business exercise.  Plans, sales, forecasts and everything else has a connection with the fiscal year.  This is also the time of the year when management is doing its assessment of the strengths and weaknesses of the business, as well as hiring and firing people.  Some businesses prior to the Christmas holidays go on a team-building period or exercise to prepare themselves for the coming year.  The fiscal year could also act as a benchmark as to where the business is at present, how and did it reach its goals, and also where is it going to?  Whether its in December or March, the end of the fiscal year could also be the beginning of the next step or voyage that was  dreamt by the founder/s and now being operationalised by staff.