Business

How to decide on your financial year-end? 

0

The end of the fiscal accounting period of a business is termed the Financial Year End of Singapore. In short, the financial year-end of a company represents the final day of its accounting period. It is a recognized interval to complete a single accounting cycle of the business. The perspective about profitability is provided by its periodicity. All the reports of financial transactions are maintained over this interval and depicted on the face of the financial statement.

The accounting period can be 52 weeks or over 12 months. Let’s suppose that you decide on a 12-month accounting and the starting period is 1 January 2020. So, what’s going to be your company’s FYE? It will be 31 December 2020. However, if you decide to choose your Financial Year End to be of 52 weeks and accounting duration starting from Wednesday 1 January 2020 then the FYE of your company will be on Wednesday only, but on 30 December 2020.

Don’t have time to handle your finances or find opportunities in government grants? CZ Consultancy has a team of with years of experience in small business grants. Contact them today!

Choose FYE carefully 

To Choose a Financial Year End Date for Your Company in Singapore you can agree on any date. Some of the most common choices are 30 June, 31 March, 31 December, or 30 September.

FYE is going to determine the time when your corporate taxes and filings are due every year. Hence, it becomes really important to carefully decide your company’s Financial Year End. Private companies are needed to carry their Annual General Meetings(AGM) within six months of FYE. Moreover, they are required to file their annual returns within seven months after FYE.

Now, you must be thinking that it is possible to change the date of FYE, once decided on. So, yes companies can do that. But they must inform the Registrar about the change in the FYE. Companies may alter the FYE for the immediate previous financial year or even for the current one.

However, the company will not be able to change its FYE if the statuary deadlines for the filing of AR or AGM holdings have passed. The approval of the Registrar will be needed for the approval to change FYE if-

  • The alteration in FYE will come out in a financial year of above 18 months.
  • The previously changed Financial Year End was changed on or after August 31, 2018. And it is within five years from the end of the lastly changed FYE.

It has been made a necessity to Issue Share Certificates for Singapore Companies to their shareholders as it is a form of a legal document to them. While registering your company or investing in one, it’s important to get a share certificate to protect and validate your ownership of a company.

We at Hey Sara, keep pride in being an experienced corporate and financial service provider in Singapore. We provide the most competitive and best value to our values clients so that they can transform their goals into an outcome with a defined action plan. At Hey Sara, we believe in our solutions that will drive your business to the path of unbelievable success.

 

You may also like

Comments

Comments are closed.

More in Business