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.