Change to Financial Year End

[Meandraft]

I've recently learnt via a Companies House notification that the company I work for has just changed their year end from 31st December to 30th June. Any ideas or experience on why a company would do this?

[lizardbrain]

I'm not an accountant or anything like that but I've done this before, I can't think of a reason why a company in distress would do this. It's usually a convenience based on syncing up with other systems. If a company was in distress, changing the date would be the last thing on their mind.

[mikeiow]

lizardbrain said:

I'm not an accountant or anything like that but I've done this before, I can't think of a reason why a company in distress would do this. It's usually a convenience based on syncing up with other systems. If a company was in distress, changing the date would be the last thing on their mind.

I suspect you’re right.
The US company I worked for did that many years back. Didn’t make a blip on the trajectory.
Maybe ask the company on a public forum

[v8notbrave]

Could be to help get accounts done early to help with refinancing i.e have audited accs for a bank or external finance or something trivial like reducing auditor fees. There is a very disproportionate no. Of companies with a Dec y/e so auditors are flat out to get accounts done within the 9 mths of y/e

[Countdown]

Meandraft said:

I've recently learnt via a Companies House notification that the company I work for has just changed their year end from 31st December to 30th June. Any ideas or experience on why a company would do this?

Is it delaying the next set of accounts or bringing them forward? i.e. if it's making the next accounting period 18 months rather than 12 it MIGHT be trying to buy time.

is it part of a Group of companies and trying to align reporting periods?