Uploaded on Feb 21, 2020
The 4-4-5 calendar is a method that is used for managing accounting periods, and it is a common calendar structure for various industries such as manufacturing and retail. This calendar divides a year into four quarters that include 13 weeks each, which are grouped into two four-week months and one five-week month. For more information on the 4-4-5 calendar, visit our website at https://www.nakisa.com/blog/accounting-compliance/benefits-and-challenges-4-4-5-calendar
Important Things To Know About The 4-4-5 Calendar
Important Things To Know About The 4-4-5 Calendar Important Things To Know About The 4-4-5 Calendar The 4-4-5 calendar is a method that is used for managing accounting periods, and it is a common calendar structure for various industries such as manufacturing and retail. This calendar divides a year into four quarters that include 13 weeks each, which are grouped into two four-week months and one five-week month. In the business world, the irregular nature of the calendar often creates challenges for people who use data for appraising results and making decisions. If you use the traditional calendar, you can find it especially cumbersome if you are in a business where variations in the number of specific days or the total number of day of the week within a period can skew trends. Important Things To Know About The 4-4-5 Calendar There are a number of benefits that you will get when you start using the 4-4-5 calendar. As already pointed out earlier, this calendar divides the standard 52 week year into thirteen- week four quarters that comprise three periods split into a four week, five week format. After every five or six years, a twist to this uniform structure occurs, which is necessary to catch up for the leap year. The 4-4-5 calendar is most commonly used by retailers. However, people in other industries can also benefit from this approach that involves diving a year into reporting periods. The typical cases include firms that are tied to the retail trade or those where labor forms a large share of the cost structure, for instance manufacturers, goods distributors and service firms. Important Things To Know About The 4-4-5 Calendar The most cited advantage of the 4-4-5 calendar is forgiving the 53rd week, year over year comparability. The advantage comes from the fact that, under this calendar, any period in a year has the same days-of-the-week composition as the time frame in the previous year. This consistency is a worthwhile factor in deciphering between calendar anomalies and substantive trends for any field where certain days of the week are higher volume days. Important Things To Know About The 4-4-5 Calendar For more information on the 4-4-5 calendar, visit our website at nakisa.com Important Things To Know About The 4-4-5 Calendar
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