calendar year accounting period

An accounting period shows when an account cycle begins and ends. It is an established time frame within which accounting functions are performed, summarized, and analyzed for the calculation of all annual financial information such as income taxes . Actual and prospective investors and shareholders analyze a business’s profitability, risk, and health condition based on key information from financial statements and reports, as well as other information disclosed, during an account period. The duration of an accounting period can vary, ranging from a week, a month, a quarter, a calendar year, or a fiscal year .

Calendar year accounting period is the accounting period that uses the calendar year, which is the common Gregorian calendar, beginning on January 1 and ends on December 31. On the other hand, fiscal year accounting period refers to a 12 months period that a company uses for its accounting purposes, the starting point of which is selected by the company.

[Last reviewed in February of 2025 by the Wex Definitions Team ]

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