Fiscal year definition

A fiscal year is the 12-month accounting period in which an entity, such as a corporation, reports its financial activity. All individuals and most business entities are required to use the calendar year as the fiscal year for tax purposes. C corporations may elect other periods, such as an April 1 - March 31 fiscal year.

The primary advantage of a C corporation electing a non-calendar fiscal year is for tax purposes, but there could be other advantages for this timing.

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