Fiscal Year
Overview
Fiscal Year – Business Overview
Fiscal Year is a foundational setup document in Dafater that defines the official financial period during which a company records, tracks, and reports its business activities. All financial transactions, reports, and compliance-related activities are organized and evaluated based on the selected Fiscal Year.
Purpose in Business Operations
The Fiscal Year represents the time span used by the organization for:
- Financial reporting and performance measurement
- Budget planning and expense control
- Tax calculation and statutory compliance
- Profit and loss analysis
Every accounting entry, such as income, expenses, assets, and liabilities, is associated with a specific Fiscal Year. This ensures financial data is structured, comparable, and legally compliant.
Prerequisites and Setup Requirements
Before using the Fiscal Year, the business should ensure:
- The company’s legal and operational start date is known
- The accounting calendar (start and end dates) is finalized
- Alignment with statutory or regulatory financial periods (for example, government-defined financial years)
The Fiscal Year should be created before entering any financial transactions to avoid reporting gaps or inconsistencies.
Typical Workflow and Business Fit
- Create the Fiscal Year at the beginning of a new financial cycle
- Define start and end dates that match the company’s reporting period
- Activate the Fiscal Year so it becomes available for transactions
- Record daily business transactions such as sales, purchases, payroll, and expenses under this Fiscal Year
- Generate financial reports like Profit & Loss, Balance Sheet, and cash flow statements for the same period
- Close the Fiscal Year after final reviews, audits, and compliance filings
This workflow ensures that all financial activity is clearly grouped within the correct reporting period.
Key Business Scenarios Where Fiscal Year Is Essential
- Financial Reporting: Preparing annual financial statements for management and stakeholders
- Tax Compliance: Calculating taxes and filing returns based on the correct financial period
- Budgeting: Comparing planned budgets against actual performance
- Audits: Providing auditors with clear, period-specific financial records
- Multi-Year Analysis: Tracking business growth or decline across different Fiscal Years
Without a properly defined Fiscal Year, these activities become inaccurate and difficult to manage.
Important Considerations for Users
- A Fiscal Year should not be changed once transactions are recorded, as this can affect reports and compliance
- Ensure only one active Fiscal Year is used for regular operations at a time
- Plan future Fiscal Years in advance to ensure smooth year-end transitions
- Coordinate Fiscal Year dates with tax advisors or regulatory requirements
In summary, the Fiscal Year is a critical business setup in Dafater that provides structure, clarity, and compliance for all financial activities. It serves as the backbone for accurate reporting, decision-making, and long-term financial planning.
Represents a Financial Year. All accounting entries and other major transactions are tracked against the Fiscal Year.
Basic Information
- Module: Accounts
- Document Type: Setup
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| year | Year Name | Data | ✓ | - | Fiscal year identifier used for accounting and reporting. |
| disabled | Disabled | Check | - | Prevents this fiscal year from being used in transactions. | |
| isshortyear | Is Short/Long Year | Check | - | Indicates non-standard fiscal year length due to adjustments. | |
| yearstartdate | Year Start Date | Date | ✓ | - | Start date defining beginning of the fiscal year. |
| yearenddate | Year End Date | Date | ✓ | - | End date defining closure of the fiscal year. |
| companies | Companies | Table | Fiscal Year Company | List of companies using this fiscal year in Dafater. | |
| auto_created | Auto Created | Check | - | Indicates fiscal year was automatically generated by Dafater. |
Child Tables
Companies (Fiscal Year Company)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| company | Company | Link | Company | Company this fiscal year configuration applies to in Dafater |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| Purchase User | ✓ | |||||
| System Manager | ✓ | ✓ | ✓ | ✓ | ||
| Stock Manager | ✓ | |||||
| Auditor | ✓ | |||||
| Accounts Manager | ✓ | |||||
| Sales User | ✓ | |||||
| Stock User | ✓ | |||||
| Accounts User | ✓ | |||||
| Employee | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Budget | Linked from | Accounts |
| GL Entry | Linked from | Accounts |
| Lower Deduction Certificate | Linked from | Regional |
| Monthly Distribution | Linked from | Accounts |
| Period Closing Voucher | Linked from | Accounts |
| Salary Slip | Linked from | Payroll |