The year 2023 is now here, and the calendar is in the process of being switched over to the new fiscal year. The current calendar year is Q4 of 2022, and the new one will start July 1, 2023. For the most part, financial quarters will be the same as the previous years. However, some companies may choose to use different calendar cycles.
A fiscal quarter is a three-month period on a company’s financial calendar. It serves as the basis for reporting financial information and paying dividends. It is also used by the IRS to impose quarterly estimated tax payments for certain taxpayers. While many people agree that quarters are useful for comparing financial information, critics note that it creates an additional reporting burden.
Financial quarters are important for companies, especially public companies. Public companies typically have more reporting requirements than private ones, and specific decisions are often made around the quarter. In addition, most companies pay dividends quarterly. These reports often affect a company’s stock value. While these reports may be routine, some companies have unusual quarters.
