A fiscal year is called a 12-month period, which is used to perform calculations regarding annual accounting reports of economic organizations where all the gross annual income and expenses of said organization are budgeted, all this in order to facilitate the Government entities that regulate fiscal activity in different countries and that require such reports every 12 months. The term can also refer to the period used for the cancellation of income tax.
A fiscal year has 12 consecutive months that end on the last day of any month, except for the month of December, when it comes to filing taxes, the fiscal year can start on March 1 and end on February 28, but instead of View tax activity in 12 months must be observed in weeks, and may contain a 52 or 53 week fiscal year
There are states where two types of tax years are recognized for organizations that declare their taxes, these are the "fiscal year" and " calendar year ", the latter is a period that consists of 12 months and begins on days 1 January of each year and ends on December 31 of the same year. In the States where this modality exists, companies can choose what type of year they want to implement to present their annual accounting report. All companies are allowed to adopt the calendar year, however those that do not use the ledger tool are required to use it. For a company to change its type of tax year, it is necessary for the competent bodies to approve said change.Otherwise, you must continue to use your tax year regardless of the changes that the company has undergone.
There are institutions that usually end their fiscal year during the summer, such is the case of universities in the United States, where the fiscal period is aligned with the school period, this is motivated by the fact that in said period the teaching institutions are less load work.
