What is a Fiscal Year-End?

A fiscal year-end is the end date of a corporation’s financial year — the closing date for annual accounting records.

Unlike personal tax returns which end December 31st, corporations can choose when their fiscal year ends.

When is the First Fiscal Year-End?

For newly incorporated companies in Canada, the first fiscal year-end must be within 53 weeks (371 days) following the incorporation date. It’s declared on the corporation’s first T2 tax return filed with the CRA. You don’t need to know this date at incorporation.

Why Choose a Non-Calendar Year-End?

Common reasons include:

• Allowing accountants to prepare year-end finances during their less busy period
• Avoiding a short “stub” year-end if incorporating later in the year
• Selecting a fiscal year-end during the business’s slower period

Our Recommendation

Consult with your corporation’s accountant when choosing a fiscal year-end. They can advise based on your business operations, industry, tax situation, and other factors.