can any one tell me what is the difference between
Accounting period & Financial year?
Will be waiting for your answer.
It's an open source question, any correct answer will be
appreciable.
Thanks.
Regards,
Mr. RKO
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Answer / pratish.m
Financial Year Means
In most countries, the books of accounts of a company are
maintained for a stipulated period like, 12 months, 15
months, and so on. This stipulated period is referred to as
the Financial Year.
The stipulated period of the financial year is 12 months in
most countries.
For example, if you enter April 1, 2011 as the date, the
Financial Year will be from April to March ending with
March 31, 2012. If you enter October 1, 2011 as the
Financial Year From then the financial year will be from
October 2011 to September 2012 ending with 30th of
September every year.
Accounting period Means
Presumes that you wish to maintain books from the beginning
of the financial year. Hence, displays the date given in
Financial Year From field automatically.
The date for Books beginning from can be changed, in case
of companies, which are incorporated in the middle of the
year. If your company is new, you can opt to start the
books of accounts from the date of actual establishment of
the company (date of incorporation) but close books
according to the Financial Year as specified by you.
For example, if your company is established on August 19,
2011, the opening balances for all the accounts can be
given as on August 19, 2011 even though the Financial Year
given is April 1, 2011 (April to March financial year). The
company's books will begin on August 19, 2011 and close on
March 31, 2012, which ensures smooth transition to the next
year.
Above information is given as per my knowledge. Thanks you
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