Commercial Year

Consumers buy things 24 hours a day, 365 days per year. That creates a lot of inventory tracking and accounting. It means things are constantly coming and going. And every month has a different number of days that can end up making life exceeding hard for CPAs dealing with the mathematically illiterate.

So companies operate on a completely different calendar known as a “commercial year.” Since months have different numbers of days, using this adjusted schedule allows business operators to better manage inventory, compare monthly expenses, and streamline processes.

The idea is simple: For accounting purposes, a business operates of 12 months of 30 days. What happens to the other five days of the calendar? Uh...we can’t answer everything for you.

And don’t get us started on Leap Day. Go ask Siri. She knows everything.