24 Nov I am starting a new business and want to know if it is better to do my books on a fiscal year or calendar year?
In most cases, it doesn’t really matter. Most small businesses use the calendar year for simplicity. However, it can be useful to use a fiscal year if your business has a busy season at a particular time. For example, this adviser was previously in the toy business working at a toy manufacturer. We made the bulk of our sales to retailers in the last quarter of the calendar year for the holiday season. We got paid for these sales January through March. In this situation, we ended our fiscal year in March and started the new year April 1. That is an example of when a fiscal year makes sense. Tourist businesses may also benefit from a fiscal year
We would urge you to speak with your accountant regarding your particular new business.