CHOOSING THE RIGHT "TARGET MONTH"
Let’s say your corporation’s fiscal year ends in December and you have the following sales figures:
In this example, April and May 2020 are the months with a 50% decrease (or more) in sales compared to the corresponding months of the last year.
We’ll use the Calculation method for incorporated business:
Total annual sales of preceding fiscal year – (Monthly sales of target month × 12 months)
Total sales of the preceding fiscal year are ¥5,425,000.
Despite the fact that May has the highest sales decrease rate, it’s more advantageous to select April as the “target month” since you’ll get the maximum amount of ¥2 million.
The reason why April happened to be the best option for “target month” is because it meets the following two criteria: 1) its sales have dropped by at least 50% and 2) it has the lowest sales figures in 2020 so far.
It is, therefore, may be worth waiting for a little to see what sales figure the future can bring you.
That is, of course, if you can afford to wait.
