Who decided when the fiscal year would start and why?

Answer 1

There are a number of factors involved but in most cases, the business will decide its "year". Usually it will be based on its industry. For example, if the company is a government contractor, it could elect to have its fiscal year run from 10/1 - 9/30, which is the fiscal year of the federal government, its major client.

Answer 2

Individuals are required to have a calendar tax year. (1/1 - 12/31). Businesses and other legal entities are allowed to have fiscal years for various reasons including seasonal business, more accurate reflection of annual results of operations, or other various business reasons. In order to change an entity's taxable year, a form must be filed with the IRS that basically is a request form for a change in years, and this is where you must state the reason for the change. You can have your fiscal year be any month-end of the year - from Feb through November. Obviously, if you do not have a valid business reason for your request, it will be denied.

Answer 3

Individuals are usually required to use the calender year. Businesses usually try to use a fiscal year that ends when business is slow. this gives them more time for year end accounting/tax work.

Answer 4

I did & I forgot