What is a business quarter system?
Business quarter system is used by businesses worldwide to segment the year into four parts for reporting and analytical purposes. The company establishes its goals, objectives and schedules for each quarter. A quarter is of three months’ duration.SignificanceCompanies report and testify their earnings, profits/losses, sales, growth rates, returns on investments, etc. every quarter. These are represented in the form of reports for the company’s management, investors and creditors.FunctionBy following this business quarter system, the business is able to take stock of its inventory levels, purchases of raw materials and its sales. Also when the company has laid out its yearly targets, the company can investigate deviations from the projected path and take steps to nullify them.FeaturesExtensive analysis, reporting and auditing at the end of the quarter is the main inherent feature of this system.AdvantagesWhen a company follows this system, constant monitoring of its systems, practices
The business quarter system is a method used by most public companies and many smaller companies to divide the year into 4 sections, or quarters. Quarters are used for reporting, analysis and purchasing cycles, especially when dealing with regulatory agencies such as the Securities and Exchange Commission (SEC). For many in large businesses, the business quarter system dictates schedules, goals, rewards and evaluation time frames.
