The beginning of a new year can be an extremely interesting time for small businesses, especially if they are just starting out. Not only does it typically signify the time for taxes to be filed but it can also hold great promise as many businesses elect to operate their fiscal calendar in accordance with traditional yearly dates. It is here where new business owners may find some source of confusion, especially when needing to report earnings and file a tax return.

Depending on the type of business structure you choose, these applicable time frames are extremely important. Understanding their differences and being able to put your company in the best possible position to succeed is critical. Fortunately, there is help available to guide you as key decisions are made about the future operations of your business.

Calendar Year

The calendar year is most commonly associated with many businesses due to its ease of alignment and being able to actively track and keep goals. In addition, many other entities operate along the same guidelines, making any cohesion or association easily executed. The January 1 to December 31 calendar year is also relatable on a global scale and helps in terms of tax filing and all due dates associated with a return.

Tax Year

A company’s tax year can also be adjusted internally but is usually associated with how the entity elects to operate their own financial records. These tax years are typically divided into quarters and if aligned with the calendar year would include the ending dates of March 31, June 30, September 30, and December 31. However, while the tax year is organized to relate records, it may also be equal to the fiscal year if so desired.

Fiscal Year

The Internal Revenue Service (IRS) mandates certain businesses align their fiscal year with the calendar year for ease of reporting purposes, but other organizations may choose to operate differently. A fiscal year may be any 12-month segment other than the traditional calendar year. For example, companies can choose to operate on a financial reporting calendar of July 1 - June 30 or any other consecutive 12-month period. Despite the differences, fiscal years are more commonly associated with internal operations and not necessarily tied to the tax filing season.

If you need assistance determining the best organizational practice for your business in terms of operations over time, are in need of filing a business or personal tax return, or have any other tax related questions then let the professionals at Bloch Rothman and Associates assist you today. In addition to providing answers for your questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a top quality tax service, our group can also complete all types of returns and get answers to any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!