Association’s business year

The association’s business year is also referred to as fiscal year or financial year. It usually corresponds to the calendar year, which has many advantages. However, it can also start and end in another month, but it should always span a period of twelve months. The association’s business year is organised around the annual meeting. In this meeting, it is necessary to define the plans for the future. In the annual meeting, the committee shall also give a report on what has been done during the previous year.

Question

Does the association year always have to be the calendar year?

Answer

As a rule, no. The majority of all associations are, however, likely to align their activities with the calendar year, which is useful as the two years then run parallel to one another. On the other hand, associations that are active, for example, in the area of education or childcare tend to plan their activities according to the school year or on a semester basis. In such cases, it makes sense for the association year to deviate from the calendar year. Under certain circumstances, there may be a certain amount of additional work due to the fact the some administrative tasks (insurance, tax, etc.) also always have to be completed with the reference date of 31 December for legal reasons.

Association’s business year

Association year the same as a calendar year?

Question

Answer