An accounting period is a time frame used for financial reporting.
All expenses, income, profits that occur in the accounting period’s given date range are part of that accounting period.
When generating financial reports, such transactions are linked to an accounting period based on the Start & End Date.
The 3 most common types of Accounting Periods are Yearly, Monthly and Quarterly.
Yearly: This can be used for Year Performance Reviews, Income Tax Returns, End Of Fiscal Year Reporting.
Quarterly: This can be used for Short Term Performance Reviews, Investor Reports & VAT.
Monthly: Everyday operations, monthly profits, internal reports.
Categories
