ELI5: Explain Like I'm 5

4–4–5 calendar

Imagine your birthday always falling on a Sunday, but you want to celebrate it on a Saturday. That's what the 4-4-5 calendar is like.

Most calendars follow a pattern of 12 months with 30 or 31 days each, except for February, which has 28 days (or 29 in a leap year). However, some businesses use a different type of calendar called the 4-4-5 calendar.

The 4-4-5 calendar is a way to divide the year into 13 periods, each lasting four weeks and five days (hence the name 4-4-5). Each period includes one or two months, depending on the year.

This type of calendar is used by businesses that operate on a fiscal year (which starts and ends on specific dates) rather than a calendar year (which follows the traditional 12-month cycle).

Using the 4-4-5 calendar allows businesses to have consistent reporting periods, making it easier to compare financial data year-over-year. This is especially helpful for retail businesses that have seasonal fluctuations in sales.

But just like how celebrating a birthday on a different day can be confusing, understanding the 4-4-5 calendar can take some getting used to. It's important for employees to be aware of the calendar and its reporting periods to ensure accurate record-keeping and financial planning.
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