Changes

Often the fiscal or tax year is specifically established not to match the calendar year (also called natural year) so that accounting year-end work does not coincide with periods of high activity, such as the Christmas shopping rush for retailers, or with [[holiday]] periods when employees may prefer to take vacation.   

Often the fiscal or tax year is specifically established not to match the calendar year (also called natural year) so that accounting year-end work does not coincide with periods of high activity, such as the Christmas shopping rush for retailers, or with [[holiday]] periods when employees may prefer to take vacation.   

A popular use of a non-calendar year as the fiscal year involves retailers. In many countries, at the end of December, levels of [[inventory]], [[receivable]]s and [[payable]]s will be higher than at other month ends and consequently more complex and time-consuming to measure accurately.  Therefore, retailers commonly use a month other than December to end their fiscal year. January may be chosen as the last month of the fiscal year because activity levels are likely to be closer to normal by the end of January.

A popular use of a non-calendar year as the fiscal year involves retailers. In many countries, at the end of December, levels of [[inventory]], [[receivable]]s and [[payable]]s will be higher than at other month ends and consequently more complex and time-consuming to measure accurately, while January often sees a higher than normal level of returns from Christmas sales.  Therefore, retailers commonly use a month other than December to end their fiscal year; January may be chosen as the last month of the fiscal year because activity levels are likely to be closer to normal by the end of January, as well as to match December sales with January returns.

In addition, many companies find that it is convenient for purposes of comparison and for accurate stock taking to always end their fiscal year on the same day of the week, where local legislation permits.  Thus some fiscal years will have 52 weeks and others 53.  Major corporations that adopt this approach include [[Cisco Systems]] and [[Tesco]].

In addition, many companies find that it is convenient for purposes of comparison and for accurate stock taking to always end their fiscal year on the same day of the week, where local legislation permits.  Thus some fiscal years will have 52 weeks and others 53.  Major corporations that adopt this approach include [[Cisco Systems]] and [[Tesco]].