At a Glance
A fiscal year is generally a business year comprised of 12 months of trading and not necessarily the calendar year from January to December.
While the Canadian government's fiscal year runs from April 1st to March 31st, private businesses have different fiscal years. At the end of the year, businesses report on their fiscal year transaction histories in the form of reports including tax reports, budget deficits, external audits, and more.
Among the produced annual reports are tax slips which indicate a summary of an employee's annual earnings and deductions.
A Sample Tax Slip (T4)
Why your fiscal year transaction history & tax slips matter
Your fiscal year transaction history serves as a reflection of the trading year. Businesses rely on this history to set budgets for the coming year, put in place corrective measures where necessary, and comply with government requirements including tax returns.
Similarly, tax slips (T4) help businesses to adequately report on amounts paid to employees and how much was deducted for tax purposes. The slips also help employees to file their returns and analyze their payslip deductions for any inconsistencies during personal income tax filing. A fiscal year transaction history and tax slips allow the business to better comply with provincial requirements, shareholder reporting, and planning for the coming business year.
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