Cut-off Period

Tax Glossary Definition

Cut-off Period

The cut-off period refers to the specific time frame up to which financial transactions are recorded or considered in the accounts of a business or for tax purposes. It ensures that revenues and expenses are accurately matched to the relevant financial year.

Example: For a financial year ending on 31 March, all transactions up to 31 March are included in the accounts of that year, while transactions after that date are carried forward to the next year.

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