Why in general accounting year is started from 1st April?
A popular use of a non-calendar year as the fiscal year involves retailers. In many countries, at the end of December, levels of inventory, receivables and payables will be higher than at other month ends and consequently more complex and time-consuming to measure accurately. Therefore, retailers commonly use a month other than December to end their fiscal year. January may be chosen as the last month of the fiscal year because activity levels are likely to be closer to normal by the end of January.
In addition, many companies find that it is convenient for purposes of comparison and for accurate stock taking to always end their fiscal year on the same day of the week, where local legislation per ...more
United Kingdom (UK)
Here is no single, clear explanation of why the fiscal year starts in April. But here are a few possible explanations:
The British followed the April to March system for financial accounting. Also, under the old Julian calendar that Britain followed, April 1st loosely coincided with an Indian month that is considered the New Year in many Indian cultures.
India was ruled by the British for a long time, and we followed the Apr-Mar financial year during that time. After independence, India has continued with the same system. ...more