If you own a business that manages a lot of inventory, you may consider choosing a year-end that corresponds with the end of the busy season and therefore when inventory is likely to be at its lowest. This means less inventory has to be counted, which decreases costs and increases accuracy. Furthermore, a quiet time of year makes it easier to close the books as there are fewer transactions in process and more time available from support staff, if needed.
If you choose to have a meeting of the board of directors to pass this resolution, it is necessary to record the minutes of this meeting. You will therefore need a Board Minutes to Change Financial Year. Alternatively, the board resolution can be passed by way of a written resolution using a Board Resolution to Change Financial Year.
- Details of the company;
- Details of the meeting (if using Board Minutes);
- Date of passing the resolution; and
- New financial year end date.