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Choosing a Fiscal Year End

Working with many startups, MCN is often asked by its client to suggest fiscal year ends for companies. The CRA allows companies to choose any date as a fiscal year end, as long as it falls within 53 weeks of the date of incorporation. We typically recommend going with a fiscal year end that falls on July 31, unless there are particular circumstances that make a different date a better choice. There are several reasons why we make this recommendation: 1. A large percentage of companies have fiscal year ends that coincide with the calendar year end (i.e. December 31). December 31 is not only the most popular corporate fiscal year end, it is also the fiscal year end for all individual tax payers, sole proprietorships, as well as for most of the partnerships. Generally, the latter three cannot choose a different fiscal year end. This means that the next […]