Financial year
Okay kiddo, so a financial year is like a calendar for money. It helps companies and governments keep track of how much money they make and spend in a specific period of time.
Just like how a regular year has 12 months, a financial year can also be divided into months. But instead of starting in January like a regular year, the financial year usually starts in July or October.
During this time, companies and governments record all the money they earn from selling things or providing services, and all the money they spend on things like paying employees or buying materials. This way, they can see how well they are doing financially and make plans for the future.
Once the financial year is over, they use all the information from the year to create financial reports that show how much money they made, how much they spent and what they have left.
So that's what a financial year is all about - it's like a special calendar that helps people keep track of money. Cool, huh?
Just like how a regular year has 12 months, a financial year can also be divided into months. But instead of starting in January like a regular year, the financial year usually starts in July or October.
During this time, companies and governments record all the money they earn from selling things or providing services, and all the money they spend on things like paying employees or buying materials. This way, they can see how well they are doing financially and make plans for the future.
Once the financial year is over, they use all the information from the year to create financial reports that show how much money they made, how much they spent and what they have left.
So that's what a financial year is all about - it's like a special calendar that helps people keep track of money. Cool, huh?
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