Accounting and related terms

Accounting Year

Over 150 Articles for Founders, Entrepreneurs and Business Owners

Back to Home page

What is an Accounting Year?

An accounting year is annual financial reporting period in which company organizes its financial data. It is useful when you are running a business. Potential shareholders analyze the company’s performance through its financial statements. That’s why it is important to keep your financial records clear and prepare them regularly. Typically once a year each company is preparing balance sheet, profit and loss account and cash flow. This year is cold accounting year.

All financial data is gathered and used for the compiling of external and internal reports published in financial statement.

An end year report entails:

  • An income statement: It shows all the transactions that the organization conducted over a period. The records include gains, expenses, sales, and losses by the company
  • A cash flow statement: It shows how cash flows both in and out of the company and what is the profitability of the company
  • A retained earnings statement: It usually presents the total profit that the company made over a year

How an Accounting Year Works?

A company has to define the period when the accounting year begins and ends. The accounting period is different in different countries but usually it lasts 12 months. In some cases 18 months.

How can Zistemo Help You?

Simplify your Accounting with Zistemo Click To Tweet

Compiling financial reports can be quite complex. Zistemo helps you compile all the financial data you need in one place.  Streamline the financial reporting at your organization to avoid accounting issues and taxes problems.

Related words

zistemo: the productivity booster for your business

One tool, everything under control. Track hours worked, time spent on all your projects, and all the relevant records from the bid you prepared for your client to the receipts you keep for your accountant.

Start your 14 day free trial