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. Having known what a financial year is, the financial calendar can be simply be described as a calendar the business use to calculate the revenues and expenses of the business sometimes within the financial year for example quarter yearly of half yearly or sometimes at the end of the financial year. 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 6 months’ period of a financial year is what is known as the half annual financial period of the business. The definitions of financial calendar and the financial year will also help us to see without doubt that they also have benefits to organizations using them therefore this article will provide some of the advantages of having a fiscal calendar.
The financial calendar has helped in calculation of profit or loss of the organization since it gives a period with the 12 months’ period either after 4 months or 6 for the organization to calculate and see whether they are making profit or losses and this is very helpful to the organization since the main aim of business is to make profit.
Having a financial calendar is also very important when making the budget of the business since no business can survive without a budget and therefore the calendar helps the business to know they will create a budget that will enable them to run up to what period of time within the financial year.
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.
The calendar helps us to calculate the profit and losses the company might have made and therefore be able to rate the firm and also make adjustment in case there is poor performance from a certain department in the firm.