Question

What is the differences between "Fiscal Year" and "Calendar Year" in Accounting?

What is the differences between "Fiscal Year" and "Calendar Year" in Accounting?

6 years ago - 5 answers

Best Answer

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A financial( or fiscal) year can be any 12 month period.
Example:
The New England Patroits may elect to operate on a fiscal year , beginning March 1 and ending Feb 28. The reason is, come Dec 31, their year us far from over. There are still playoffs, and a super bowl. This all means income and expenses, and it may make a lot more sense to have all the income and expenses from one season placed into one accounting year.

A calender year system may make sense for a lot of companies, but for others, it might not be the best idea. You cannot change, from one to the other, unless there are compelling reasons.
Most governments opertate on a FY ( fiscal year) starting July 1, because it may take several months after 12/31 to receive and account for all the tax money that is due them.

6 years ago

Other Answers

Calendar year is 1 Jan thru 31 Dec. Fiscal year is whenever the budget starts. Many governments start their fiscal year 1 July and close out 30 June. I have no idea why.

by heyteach - 6 years ago

Calendar year begins on Jan 1 and ends on Dec 31

Fiscal year is determined by a company or organization for the beginning and end. Example, the Federal Govt has a fiscal year that starts on July 1 and ends on June 30

by edco - 6 years ago

A calendar year is January to December. However, a school year is September to June, so a year does not always begin in January and end in December. A company's fiscal year is whatever they use for their financial beginning and end. It could be any month to the same time a year later.

by Ella - 6 years ago

Fiscal year,is the end of the account year.The
day of the month of the year,that a company
started.accounts settled and new planing for the
next fiscal year.
Calender year, is last day of old year and first
day of new year.

by phillip w - 6 years ago