Write the difference between calendar year and fiscal year.

The major differences between calendar year and fiscal year are as follows −

Calendar year

• It has fixed time period.

• It is used in normal life undertaking.

• It includes 365 days (from January 1st to December 31st).

• Tax reporting is easy.

• MNC’s Financials is simple.

• Easy to compare financials of different companies.

Fiscal year

• Business can choose its starting date as per their requirement.

• It is used to prepare business accounting, financial reporting and tax reporting.

• 12 months’ period is there in a fiscal year.

• Tax reporting is complicated as compared to calendar year.

• MNC’s financial is time taking.

• Comparison of financials of different companies is difficult.