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A fiscal year is an accounting period. The accounting period can either be the calendar year from January to December or another 12-consecutive-month period selected by a company. Fiscal years are important because they are the period by which companies generate a variety of financial data and determine taxes, profits and expenses.
Calendar tax year. A calendar year is twelve consecutive months, running from January 1st and ending December 31st. Most small businesses use a calendar year as their tax year. Fiscal tax year. A fiscal tax year is twelve consecutive months ending on the final day of any month other than December (i.e. July 31st). Alternatively, a fiscal tax year may also be a 52 to 53 week tax year that does not end on the last day of a given month.