What is the closing month of an accounting year?

The closing month of the accounting year can be referred to as the last month of the accounting year or tax year. However, an accounting or tax year is usually 12 months long. It can be based on a calendar year or a fiscal year. A calendar year comprises 12 months, that end on December 31.

How long is an accounting year?

However, an accounting or tax year is usually 12 months long. It can be based on a calendar year or a fiscal year. A calendar year comprises 12 months, that end on December 31. In bookkeeping, an accounting period is the time period within which management accounts and financial statements are created.

What is an annual accounting period?

This annual accounting period imitates a basic 12-month calendar period. An entity may also elect to report financial data through the use of a fiscal year. A fiscal year arbitrarily sets the beginning of the accounting period to any date, and financial data is accumulated for one year from this date.