What date ranges do fiscal quarters fall on and how are they calculated?


0

I thought the answer to this would be easy as I went online and looked them up, but apparently the fiscal calendar used changes based on which industry is using them. How do I find out the correct fiscal calendar for a specific industry and how do I calculate (or find) the date ranges on the calendar?

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asked Mar 26 '13 at 03:26
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Leeand00
108 points

1 Answer


3

It depends on the legal requirements for setting the entity fiscal years in various countries. Depending on how your entity is organized, you may not have a choice in that (for example in the US - sole proprietors, LLC, partnerships have fiscal years derived from the fiscal years of the owners/partners inmost cases). If you do have a choice - chose what's most convenient to you.

Considerations to choosing the fiscal year (if it is at all a choice) are the business cycle, the owners' years (and dependencies) and the reporting overhead. It may be easier to adopt a calendar year, or it may be cheaper to start full fiscal year from the date of organization (thus saving the partial year reporting expenses). If your business is seasonal, it might make sense not to have a year-end in the middle of the season, and so adopt a year so that it would be convenient in this sense.

Remember that once chosen, it is very difficult to change (in most cases you'll have to explicitly ask for a permission from a regulator, like SEC or IRS, or both - in the US).

answered Mar 26 '13 at 03:33
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Littleadv
5,090 points
  • But how does one find out which fiscal calendar they are using, or have the choice of using? What laws does one need to refer to? – Leeand00 11 years ago
  • @leeand00 in different countries they have different laws. Do you have any particular country in mind? – Littleadv 11 years ago
  • I was thinking the United States – Leeand00 11 years ago
  • @leeand00 in the US it would be the tax code (specifically: 26 USC ยง 441) – Littleadv 11 years ago

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