Business year

The business year is usually the 12-month period for which the company prepares its financial report. The duration of the business year is basically the same as the calendar year, but it can also differ from it, and even – in rare cases – it may not even last 12 months.

The business year is the period for which the company prepares his report. The business year is not necessarily 12 months, and if it is, it does not necessarily start in January and end in December. By choosing the business year, you can deviate from the calendar year. But why should it be different? 

They used to deviate from the calendar year when a foreigner based company from another country from foreign branch and the business year differs from the calendar year in the case of a foreign-based company. The other option is if it is a foreign parent company into consolidation coated about its subsidiary or is a subsidiary of this subsidiary.

The business year can be changed, for example, if there has been a change in the identity of the parent company, but for this the corresponding founding deeds too. In this case, the balance sheet and that profit and loss account in addition to its data, a balance sheet and profit and loss statement containing base data that can be compared with them (one business year earlier).

A business year does not last 12 months when it comes to the establishment or termination of a company. At founding it rarely happens that a company is registered on the first of January after the administration and preparations.  It is also not uncommon for the company to cease to exist at the end of the year.