The financial calendar is derived from the term financial year and can be defined as an accounting time running for a period of 12 consecutive months which an organization uses to determine the sales that they have done and the amount of profit they have got over the period. Understanding what the fiscal year is then allows as to define fiscal calendar as simply a calendar that is used by the firm to help calculate its earnings and profits has made along the financial year sometimes it is done quarterly sometimes it is done halfway through the financial year and sometimes it is done at every end of the fiscal year depending on the firm’s policy. It is also important to know that fiscal calendar is linked to the fiscal years of each business entity and the sometimes the fiscal years of every business vary depending on the policies of the business entity. It is essential also to know what is meant by the term quarter yearly as used in the definition of fiscal year and it can be also be described as the consecutive 4 months within the financial year of a business. The half annual period of an organization can be described as the 6 months’ period within the 12 months’ period of a finical year. Having known what the definitions of the fiscal calendar are it is without doubt that fiscal calendar has several benefits to the organization and this article will provide some of the benefits of having a fiscal calendar.
The presence of the calendar in an organization gives room in the middle of the year or every quarter of the year to help them calculate and see whether they are making profits or losses.
The budget always need a certain period of time within which it can be able to run and therefore the availability of a calendar is very helpful in the creation of budget of the organization since no firm can do without a budget.
In order for the business to avoid issues with the government they have to pay tax and therefore the calendar provides time for them to calculate the taxes depending on the financial year and ensure that they are paid in time to the necessary authorities.
Good performance of every business is always rated with the profit it is making therefore the calendar provides for the time to calculate and rate company’s performance.