A fiscal year is basically a one year period used for calculating financial statements related to an organization. It is used as a reference period to adjudge an organization’s recent financial performance. A fiscal year need not coincide with a calendar year. In some countries, the fiscal year is from April 1 to March 31 next year. In others it is 1 July to June 30 next year and in some, it is actually consistent with the calendar year – 1 January to 31 December.
The twisted bit is – in several parts of the world, businesses are allowed to select their own fiscal year! So several organizations in locations like – United Kingdon, USA, Sweden, South Africa, Singapore, India (those following IDR) – managed by a single accountant can be running things as per their own fiscal year. And some compliances are due relative to an organization’s fiscal year. For example, in UK, HMRC Corporation Tax payment for an organization is due 9 months and a day after its fiscal year end, whereas the return is due 12 months after the fiscal year end.
Now here’s the killer punch – from the government portal for HMRC:
If you file your return late your company or organisation will be charged an automatic penalty, even if it does not owe any Corporation Tax.
So as an accountant running a practice, managing several hundreds or thousands of clients, with this flexible framework, is a manager’s nightmare. There is no respite for slippages, penalties are prompt (and sometimes automatic!) and chances to err are significant, exponentially rising for a growing business.
We are proud to address this issue for professional services firms today. We’ve been hell bent on providing SME firms ways to automate redundant / repeatable jobs in their day to day professional life. We automate to-do list generation, work allotment, client reminders, Invoice generation, payment follow ups and now even the myriad of work which repeats in complex patterns subject to several conditions.