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Group project / sandal - Essay Example

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There are many aspects that were considered before settling on a strategic date like 31st December 2015 as the fiscal year end like: the taxation payment period, audit or accounting activities in the…
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Download file to see previous pages This counts as an advantage to the financial position of the company as at that fiscal year end date. As a result, the company has a higher debt collection period and financial level (Loughran, 2011).
Secondly, the busiest time of the year for Sandal Company falls at the beginning of the financial year. Business in a manufacturing company usually slows down during the end of the year as the inventory levels are lower. The accountant and auditors therefore have more time on their plate during the end of the year, concentrate on the analysis of the statement and correct any discrepancies. Stakeholders and business needs are other factors that have contributed to settling on such a fiscal year end date. As a company that is coming up, this date is very ideal as it falls during the first 52 weeks of operation. The alignment of such a date is in tandem with the parent company which reports on the fiscal year-end which is 31st December, 2015. Basically, the time set should be convenient for all the individuals directly or indirectly affected by the decisions made in the organization (Loughran, 2011). Other advantages that accrue to the company include lower charging rates due to little and manageable workload on the side of the accountants or auditors resulting in viable output.
The situation of the company in California is strategic as different aspects like the market, location of outlets, labour force, transportation, the availability and cost of energy, infrastructure, quality and supply of raw materials, tax laws and regulations were considered. The market is tackled in view of the concentration, number and the buying power of the consumers. The consumers should be many and mainly composed of the middle and upper class. This is meant to increase the rate of demand and decrease the bargaining power of the consumers (Loughran, 2011). Additionally, the outlets should be located strategically closer ...Download file to see next pagesRead More
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