Financial Reporting: Businesses use time periods to prepare financial statements like the balance sheet, income statement, and cash flow statement. These documents provide insights into the company's financial health over a specified period. Budgeting: Time periods allow companies to set financial goals and allocate resources effectively. By establishing a budget for a particular time period, businesses can monitor actual performance against planned objectives. Performance Evaluation: Evaluating business performance over different time periods helps in identifying trends, assessing profitability, and making necessary adjustments to operations. Strategic Planning: Long-term strategic goals are often broken down into shorter time periods to create actionable plans and milestones. This approach helps in tracking progress and making necessary course corrections.