A calendar year is a period of twelve months beginning with January and ending with December, while a fiscal year is an annual 12-month accounting period chosen by the organization or government body.

The calendar year is used for most everyday activities like keeping track of birthdays, holidays, and anniversaries, while the fiscal year is used for calculating taxes and other financial transactions. While some organizations use the same start and end dates for both their calendar and fiscal years – from January 1 to December 31, for example – others may opt for different dates. For instance, many corporations begin their fiscal year on July 1st, so the previous fiscal year will end on June 30th.

Ultimately, the choice between calendar vs fiscal year depends on your individual business needs. Whether you choose to run your operations on a traditional calendar year or a modified fiscal year, understanding the distinction can help you make better decisions and keep your finances in order.