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Fiscal vs Calendar Year?

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Fiscal vs Calendar Year?

Intuit Small Biz Blog.JPG

 

 

 

As a business, you can choose to either file for a calendar year or a fiscal year. But what exactly is the difference?

 

Intuit shared the following in their post "Should You Adopt a Fiscal or Calendar Year for Your Small Business?"

 

Calendar Year - Starts Jan 1 - Ends Dec 31

The IRs requires you to file based on a calendar year if the following are true:

 

  • You don't keep company records or books
  • You have no annual accounting period
  • Your present tax year doesnt' qualify as a fiscal year

Fiscal Year -  Any 12 month period that doesn't start in January or end in December

 

This is a good way to file if you're a seasonal business. A Calendar year would cause you to have to split your season.

 

To read more about the differences between Calendar and Fiscal Years, check out "Should You Adopt a Fiscal or Calendar year for Your Small Business"

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Re: Fiscal vs Calendar Year?

You must use the same tax year for both your business and nonbusiness income.

For example, if you report your business income on a fiscal year, you must report your nonbusiness income on a fiscal year.