How to Choose a Financial Year End for a New Company

Your Financial Year End (FYE) determines when you prepare financial statements, hold the AGM and file annual returns. New companies may consider the following:

• Match your business cycle — ending the year in a quieter period makes stock-taking and closing the books easier.
• Align with group companies — a common FYE simplifies consolidation.
• Mind the length of the first financial year — it generally should not exceed 18 months, and planning it well can affect how the start-up tax exemption is used.

Changing the FYE later requires a filing with ACRA and is subject to restrictions. We can help you plan this when incorporating your company.

This article is general information only and does not constitute professional advice. Rules may change — please refer to the latest guidance from ACRA, IRAS and MOM, or contact us for advice on your situation.