How Do I Determine my Companys Fiscal Year?
How Do I Determine my Company’s Fiscal Year?Answer: A company’s fiscal year is its financial year. Fiscal year is stated as of the last day; December 31, for example. Most companies use either the end of the calendar year (December 31) or the end of a quarter (March 31, June 30, or September 30) as their fiscal year end date. Having a fiscal year for your business is necessary for tax purposes. In the same way as for personal taxes, a business reports on its total net income as of the end of the fiscal year, as a basis for tax calculation. The fiscal year is also the time when the company takes stock internally, determines inventory, and reports annual earnings to shareholders. What is the Best Date for Fiscal Year End? Fiscal year end dates are set using two criteria: • Type of business. A sole proprietorship, or a business that is taxed as a sole proprietorship (single-member LLC, for example) must use a December
