Calendar Year Vs Fiscal Year

The challenge of a fiscal year is that you have to be mindful of the impact of not using a calendar year.

Calendar year vs fiscal year. A calendar year is defined as january 1 through december 31. For example calendar year businesses typically file their tax returns on march 15. While a fiscal year comes with some advantages so does a calendar year.

When a businesses tax year aligns with that of the business owner it makes it easier to report taxes. The calendar year as the name itself indicates that it is based on the normal calendar followed across the globe that is the gregorian calendar whereas the fiscal year can start from any day of the month but ends after 12 consecutive 12 months. Defining a calendar year a calendar year is.

Both these years have a total period of consecutive twelve months. Calendar year begins on the first of january and ends on 31st december every year while fiscal year can begin on any day of the year but will end on exactly the 365th day of that year. Key differences between the calendar year vs fiscal year let us discuss some of the major key differences between the calendar year vs fiscal year.