|A 'financial year' is truly suited to business reporting and statutory needs. In reality, business financial ‘periods’ can be very different.
As an example, receivables (Sundry Debtors) is an area that often causes confusion. The need to send reminders, resend statements of accounts and persistent follow up may require that you look at figures from date 'x' to date ‘y’ and not the rigid financial periods used for formal reporting.
With Tally.ERP 9, you can specify any date range and perform any operation that you need to.
Comparison of periods, say Q2 this year vs. Q2 last year, often required for shareholder and statutory reporting are easily accomplished.
You may also need to break up periods into smaller chunks, instead of the 'year'. While viewing reports, you can instantly break them into periods of your choice (daily, monthly, quarterly etc). For studying trends, locating unusual figures, or comparing activities for different periods, this is invaluable.
Take the case of budgets. Say for a five year long project—and for various ledgers –you need to have a budget set up for five years, another for each year, another two that are 2 ½ years... you can setup such budgets, and compare budget vs. actual for any!
In effect you can adjust the ‘focus’ on any period of your choice.
Any changes made (like a transaction inserted), are instantly carried forward, no matter how far back these are made. (The security aspects can be controlled via the User security control features.)