Natural Business Year

Natural Business Year

A fiscal year that runs according to something other than the calendar year. A natural business year often is chosen according to when most sales in a year are completed. For example, a swimsuit manufacturer may end its natural business year in September, after most swimsuits for the year are sold.
References in periodicals archive ?
The automatic procedures apply to an entity that is changing to its required tax year or a 52-53-week year ending with reference to the required tax year, or a partnership, S corporation, or PSC that wants to change to a natural business year by meeting a 25% gross-receipts test set forth in Section 5.
To meet these home front demands, Carey suggested that firms would have to "reduce non-essential work," to employ women and older men to fill staff vacancies, and "to do everything possible to spread the work, by fostering adoption of the natural business year, seeking extensions of time for filing reports to governmental bodies, and doing as much audit work as possible in interim periods" (Carey 1942, p.
Instead the profession's experts focused on (1) implementation of a natural business year, (2) early notification of the auditor's appointment, (3) increased explication of accounting standards, (4) a change in the form of the audit report, and (5) education of the public about what the audit signifies [Anon.
2002-38 and 2002-39 provide these procedures for a partnership or S corp to change its year if its current year no longer qualifies as a natural business year (or, for certain S corps, an ownership tax year).
3] An exception allows changing to a natural business year where less deferral of income to the owners result
We believe the March 31 fiscal year will better reflect our natural business year and allow us to provide financial guidance after the important holiday selling season," said Fred Gysi, senior vice president of finance & administration and CFO, THQ.
After six unsuccessful applications, I was appointed to the (now defunct) Natural Business Year Committee.
SMF presently contemplates changing its fiscal year end to June 30th as of June 30, 2001 in order to report on a more natural business year as well as on a calendar quarter basis which should enable easier and more effective following by the investment banking community.
A natural business year because it meets a 25% mechanical test;
Owners usually try to end a tax year at the conclusion of a natural business year.
Year-end financial statements that reflect the natural business year will generally present a more liquid position due to lower inventories and the sales peak just experienced.