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Q.

Why in general accounting year is started from 1st April?

Tags: money, careers, education
Asked by joyesh chakraborty, 25 Oct '09 04:28 pm
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Answers (7)

1.

To me Pradips answer looks correct
Answered by RSehgal, 25 Oct '09 05:13 pm

 
  
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2.

Are yaar bewakuf bananey ka din is called april fool is on 1st april thats why.....
Answered by kamal purohit, 25 Oct '09 04:46 pm

 
  
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3.

Often the fiscal or tax year is specifically established not to match the calendar year so that accounting year-end work does not coincide with periods of high activity, such as the Christmas shopping rush for retailers, or with holiday periods when employees may prefer to take vacation.

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
Answered by gkr, 25 Oct '09 04:40 pm

 
  
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4.

I thought maybe it is something peculiar to India. But when I did some research, I found out that we are not the only ones! There are a lot of countries where the financial year is from April to March. Some examples are:
Canada
United Kingdom (UK)
New Zealand
Hong Kong
Japan
Here is no single, clear explanation of why the fiscal year starts in April. But here are a few possible explanations:
British Legacy
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
Answered by HEMANT MEHTA, 25 Oct '09 04:39 pm

 
  
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5.

In India though we fallow to english calender but the hindu calender starts from Baisakh which comes in end of March .......that is the only reason we start our finacial year from April 1st.
Answered by pradeep mishra, 25 Oct '09 04:32 pm

 
  
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6.

Because we follow the rules laid down by American Accounting Association,which has prescribed the accounting year for preparation of corporate n Govt..accounts not the calender year.
Answered by Damodar Biswal, 25 Oct '09 04:31 pm

 
  
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7.

Tradition only ( some indian companies do have a/c from jan to dec too)
Answered by AANEWS AGENCY, 01 Apr '10 12:55 pm

 
  
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