Calendar year:
Calendar year begins on the New Year’s Day of the given calendar system and ends on the day before the following New Year’s Day. To reconcile the calendar year with an astronomical cycle, certain years contain extra eight days. It is also called civil year. It begins on January 1 and ends on December 31, a period of 365 or 366 days.
Fiscal year:
A fiscal year is a period used for calculating and annual financial statements in businesses and other organizations. In many jurisdictions, regulatory laws regarding accounting and taxation require such reports once per twelve months, but do not require that the period reported on constitutes a calendar year (that is 1 January to 31 December). Fiscal years vary between businesses and countries. Fiscal year is referred by the date in which it ends. Fiscal year is abbreviated by FY.
Differences:
| Basis | Calendar year | Fiscal year |
|---|---|---|
| Definition (www.oxforddictionaries.com) | The period of 365 days (or 366 days in leap years) starting from the first of January, used for reckoning time in ordinary circumstances. | North American term for financial year |
| Synonyms | Fiscal year, annual accounting period, civil year | Calendar year, financial year, accounting year |
| History | The history of the calendars spans several thousands years. | |
| Word origin | The word calendar originated before 900 and from Middle English yeer, Old English gear, cognate with Dutch jaar, German Jahr, Old Norse ār, Gothic jēr, Greek hôros year, hṓrā season; part of a day, hour | It is originated in 1835-45 form Americanism. |
| Begins | Calendar year begins on Jan 1 and ends on Dec 31. | Fiscal year that starts on July 1 ends on June 30. |
| Advantages/Benefits | Calendar year is less complicated. | This method may allow the industries to reduce their tax burden by spreading income and expenses throughout the same cycle. |
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