Calendar Year Vs Fiscal Year

A calendar year obviously runs from january 1 to december 31 just like the calendar on your wall.

Calendar year vs fiscal 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. For example calendar year businesses typically file their tax returns on march 15. For example the fiscal year for schools is usually july 1 to june 30. The key difference between a fiscal year and a calendar year is the fact that the former can start on any day and end exactly at the 365th day whereas the latter begins on the first of january and ends on the 31st of december every year.

While the fiscal year is a 12 month period whereby businesses choose the preferred start and end of the period the calendar year is a set period of 12 consecutive months that follow the structure of the standard calendar that begins on january 1 and ends on december 31. Definition of fiscal year vs. The challenge of a fiscal year is that you have to be mindful of the impact of not using a calendar year. 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.

A calendar year begins on a particular year and ends on the last day of that year. A fiscal year is any twelve month period that begins and ends differently than the calendar.