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| 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.
