Do You Need to Change Your Financial Year Start Date?

Following is a transcript of this episode of the Two Minute Treasurer’s Tip Podcast from MoneyMinder, with audio/video below.

Welcome to the Two Minute Treasurer’s Tip Podcast. I am your host Cyndi Meuchel with MoneyMinder. If the idea of changing your financial year has crossed your mind, you’re going to want to keep listening.

Thomas asks: We are thinking about changing our Financial Year from a calendar year, January 1, start to a July 1 start to align with the school we support. What are the steps we need to complete to get this done?

In some past episodes, I’ve talked about what a financial year is & why it’s important. You might check those out if you’d like some more background about that.

Sometimes it feels like the way you originally set it up just doesn’t suit your needs, or maybe other reporting requirements makes the way you are set up cumbersome. I recently experienced this issue with a group I belong to. Due to some changing conditions, we went ahead and made a financial year change.

You’ll use IRS Form 1128 to formally change your reporting year. We recommend checking with a tax advisor before filing or making any changes to your tax year, so you don’t experience any unanticipated surprises.

And heads up, before you file Form 1128 with the IRS, you’ll need to update your bylaws and/or articles of incorporation with your state. Then you’ll send copies of those that have been approved by the state, along with Form 1128, to the IRS. Be sure you allow some time to fully execute this change.

That’s it for today! Email your question to [email protected]. My name is Cyndi Meuchel, and this is your Two Minute Treasurer’s Tip for today.

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