What is meant by deviating fiscal year?
A deviating fiscal year is a financial year that does not coincide with the calendar year (January 1 to December 31). Companies may choose a deviating fiscal year to better align their accounting and business processes with seasonal fluctuations or industry-specific requirements. This requires special approval from tax authorities and must be applied consistently.
Typical features of software in the area of deviating fiscal year include:
- Flexible Year-End: Ability to set any date as the fiscal year-end to meet the unique needs of the company.
- Reporting: Adaptation of financial reports and analyses to the deviating fiscal year to ensure precise and relevant financial oversight.
- Tax Calculation: Automatic adjustment of tax calculations and filings to the deviating fiscal year.
- Period Accruals: Support for accurate accruals of income and expenses across the deviating fiscal year.
- Integration with Accounting Systems: Seamless integration with existing accounting and ERP systems to ensure all financial data is consistently and accurately managed.
- Compliance and Auditing: Ensuring compliance with legal requirements and preparation for audits related to the deviating fiscal year.
- Custom Settings: Ability to make custom settings and configurations to meet the specific requirements and preferences of the company.