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Accounting Terms > Accounting Period

Accounting Period – An accounting period can be as long or as short as an entity thinks it should be. It could be a week, month, or year if they so desire. An accounting period can also start and end on any date that a firm wishes it to. It could start on January 1st, and end December 31st, like many companies choose to measure this based on. Or, it could begin on the company’s first day of business and last for one year. Companies also can change these to match the business cycle, or take advantage of auditing and accounting fees that are lower during less than peak times per year. Accounting periods are not to be confused with the filing of taxes, whose dates and time frames are usually established by the government.