oboloo Glossary

Calendar Year Vs Fiscal Year

oboloo Glossary

Calendar Year Vs Fiscal Year

Calendar Year (CY) and Fiscal Year (FY) refer to two different ways of measuring a company’s fiscal performance. A calendar year is simply the 12-month period from January 1st to December 31st. This is the standard accounting period for most organizations, as well as for reporting on personal income taxes in many countries. By contrast, a fiscal year typically begins at some point other than January 1st and ends on a different day. For example, companies in the retail industry often opt to choose the start of their busiest season as the beginning of their fiscal year. Tracking performance this way can provide more meaningful insights into how seasonal trends impact overall financial health. So while CY and FY are compatible measurements, they offer different ways to look at a company’s bottom line.