Why do companies use fiscal year instead of the calendar year?
In: Other
The end of the financial year comes with a fair amount of paperwork and double checking. It is easier if the companies can set themselves up so that “busy because of end of year accounting” doesn’t line up with “busy doing business stuff/employees on holidays/etc.” They can also arrange it to make it easier to group expenses to when they’re paid. For example, many colleges/universities set their financial year to line up with summer holidays (eg US/Canada schools often using July-June) so that all the tuition paid in Sept is in the same fiscal year as the schooling it’s paying for.
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