Seasonality definition
/What is Seasonality?
Seasonality is a recurring and predictable pattern in the level of business activity over the course of a year. This pattern can be used to predict sales levels throughout the year, and so is incorporated into the annual budgeting process. When reviewing the results of a business, the analyst must take into account the impact of seasonality on reported results.
Examples of Seasonality
Here are several examples of seasonality in a business setting:
Gardening. The sale of seeds for vegetable gardens spikes in the spring months and then declines.
Golf carts. The demand for golf carts in winter climates increases during the shoulder seasons and summer months, after which it declines.
Retail industry. The retail trade experiences a major increase in sales prior to and during the winter holidays, followed by a slump earlier in the next calendar year.
Tax preparation. Accounting firms, tax software providers, and financial advisors see increased demand from January through April, peaking just before the tax filing deadline in mid-April.