What is the difference between a fiscal and a calendar year?

A fiscal and a calendar year are two different things. A fiscal year is the 12-month accounting period for a business cycle. A fiscal year-end date is different than the end of the calendar year. It’s the financial reporting cycle business uses for tax purposes. That’s one of the key differences. What is a calendar year?

Does the fiscal year line up with the traditional calendar year?

The fiscal year, a period of 12 months ending on the last day of the month, does not line up with the traditional calendar year. Learn when you should use each.

Why do fiscal years not align with the calendar year?

This is because certain entities can choose when their fiscal year starts and ends based on their accounting and auditing needs or practices. Therefore, when fiscal years don't align with the calendar year, it's often because of the nature of the business. Here are some examples of fiscal years: