March is here and there is only one topic of conversation everywhere – Year End. Seems like doomsday is around the corner if one judges by the furtive looks and low voices. Let us try and understand the mystery of the “Year End”. The what and why and the significance.

A fiscal or financial year is a twelve-month period like the normal span of a year, only it starts on 1st April and ends 31st March of the following year. It is essentially the time period for recording financial transactions of companies and individuals, and reporting it at the end of that period. That is to say, the balance sheet and other such financial statements should be ready for the perusal of the Government, at the end of the fiscal year.
The assessment year follows the fiscal year, during which the compiled financial records are filed with the Tax Department. Hence the current financial year in India is from 1/4/23 to 31/3/24 and the corresponding assessment year is from 1/4/24 to 31/3/25. Each year is divided into 4 quarters of 3 months each. This helps in keeping track of expenses and for the purpose of comparing profits for each quarter.

1. Obviously, if there is a specific time period year on year for maintaining financial records there is a stability in terms of bookkeeping. Every year the same processes can be followed for best results.
2. It is easy to compare records if everyone follows the same calendar year. That is, one is able to compare the financial performance of Company A to Company B if they have the same Fiscal year and have been through the same economic cycle.
3. Similarly, it is possible for internal performance comparison from one year to another if there is a set period for assessments. It is helpful not only for the management but also to keep an eye on your competitors.
4. If all organisations and individuals filing returns keep to a specific time period, it becomes convenient and stream lined for all Government agencies, such as Income Tax Dept and Securities & Exchange Board of India.

Women shouldn't shy away from discussing finance. This is the only way to break the walls and set a level playing field. Let's be unstoppable. We've all heard the saying, "Be the change you wish to see in the world." This is for all the ladies out there, come join FIKAA to empower women so they can learn, invest, connect, and grow together.