Year Ending Blues!

March has arrived and went past at a much higher speed than what normally other months do in same time. For other months, we have until the last day to complete the delivery of the schedule that we have. There is no problem with the month end. The month end is a blurring line and we can dispatch just smoothly on the last day of the month as on the first day of the next month. But there is a problem in the month of March. We had completed most of the schedules by 20th of the month. By 24th/25th you will be told by the customer that they have closed the incoming material because of year end and all accounting has to be closed. For companies which have excise, there is a special purpose. For most of the other part of the year, the payment of the duties can be made by 10th of the next month or quarter as the case may be. But for March it has to be done in March itself before the last day. For this reason, many companies close their inward as well as outward after 25th or so. 

Secondly, many companies are wary of increasing the stock in the month of March. For most part of the year, they would not mind any inventory. But the inventory left behind in the month of March adds to the profit booked. Higher the profits higher are the taxes that have to be paid. For actual working, people don't mind. But the profit only due to the excess inventory is a no-no because paying tax on this unused inventory is a no-brainer. This is the other reason why many companies will give lesser schedules to their vendors. People are running here and there as the target is seen clearly and depending on the role, people scramble for targets or the accounting.These blues can be systematically avoided if there is a system of maintaining balance sheet regularly. Last two days should be enough for getting the accounting work complete.