Many companies adhere to a standard calendar year, with twelve reporting periods. However many companies choose to adhere to fiscal years instead, and to differing numbers of reporting periods. Here are but a few examples of why a company would choose a fiscal year over a calendar year end:

1.      A company’s high season coincides with a traditional calendar year end, therefore the company chooses a fiscal year to
  occur when work pressures are not voluminous.

2.      A company’s inventory levels are typically at higher levels at calendar year end, therefore the company chooses a fiscal year
   to occur when inventory levels are lower, and physical inventory counts are easier.

3.      A company’s accounting firm offers lower fees for performing an audit or review based upon a fiscal year end, rather than a
   calendar year end.

Other companies prefer different numbers of reporting periods. For example, some companies prefer to have 13 equal reporting periods a year based on a 4 week cycle. Because all reporting periods have the same number of days, this approach provides a more consistent basis for comparing results from one reporting period to the next. Some companies such as hotels prefer to have 365 reporting periods a year. The screen shown below provides the capabilities to control all of these settings.

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