Calendar Year

This concept seems clear, but remember we're talking versus a fiscal year. The calendar year on Earth obviously runs from January 1 and December 31, but it's important to keep in mind that a company's fiscal year could be totally different. Some companies choose their fiscal year to be July 1 through June 30, while others like to end their year when taxes are due and go from April 1 through March 31.

Large retailers prefer starting their fiscal year on February 1 when inventories are low after a busy holiday season. Most seasonal businesses such as swimming pool installers choose a fiscal year when they can best match their expenses to their revenue. They do not want to start their year in January and not have any revenue until May.

Most companies have their fiscal year match the calendar year. In any case, it's best to follow the KISS principal: Keep It Simple, Stupid.