Recently we read a thought-provoking article from Small Business Trends on the subject of Fiscal Tax Year. Many of our clients utilize a fiscal tax year instead of a standard calendar tax year. Why do they do this?
In a standard tax calendar, your company aligns their accounting periods with a regular calendar to end the year on December 31. By contrast, you can define your own start and end dates to establish your tax year for reporting with a fiscal calendar. If a fiscal calendar is critical to your business then C Corporation offers the most flexibility. Other types of business like sole proprietors, S Corporations, partnerships and LLCs typically use calendar tax years.
The article, written by Nellie Akalp, goes on to detail:
- Advantages of Fiscal Year Reporting
- Companies that can benefit from this selection
- How to change your reporting calendar
For the complete article, click here.
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