Reporting your self-employment income: What is a fiscal period?

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As a self-employed individual, you report your income based on a fiscal period. What is a fiscal period? A fiscal period is the time between the day your business starts its business year and the day it ends its business year. A fiscal year for an existing business is usually 12 months. It cannot be longer than 12 months. But it can be shorter than 12 months in some cases.

Generally, a self-employed individual have to use a December 31 year-end. But for those who are eligible individuals, they may use another method of reporting business income that will allow them to have a fiscal period that does not end on December 31. However, if you do not use the December 31 year-end, you will need to refer to Form T1139, Reconciliation of 2018 Business income for Tax Purposes to calculate the amount of your business income to report on your tax return.

Please contact us at KD if you have any questions and need help with filing your tax return as a self-employed individual.

Source: https://www.canada.ca/en/revenue-agency.html
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