Natural year

economic-dictionary

A calendar year is the 365-day period that spans from a particular calendar day to the immediately preceding day of the following year. In leap years, 366 days are usually counted.

Usually the concept of calendar year is used to refer to the period of time that goes from January 1 to December 31. For companies and institutions, the calendar year does not necessarily have to coincide with the business year or the fiscal year.

However, in the western economic environment it is common for the aforementioned to be understood as a calendar year, adapting the concept to the 365 days that go from the first day of each year to the last.

Setting the start of the calendar year by seasonality

In the field of business administration and organization, it is usual to take advantage of the term of the calendar year to adapt it to the fiscal year. This occurs especially in those companies with an important trait of seasonality in their commercial activity.

In these cases, the calendar year is set so that the company's lowest level of sales or production coincides with the end of the calendar year period.

In other words, the calendar is set seasonally according to the nature of the firm or organization in question.

Uses of the calendar year concept

It is common in the economic and administrative environment to use this concept as a way of setting a limit or maximum term for making a payment, compensation or the validity of a particular contract.

Thus, when "in a calendar year" is indicated, the text would indicate that the following 365 days are available after a specific date for compliance with the clause in question.

On the other hand, it is also common for us to come across the expression "in the calendar year." In this case, what is indicated is that it is necessary to fulfill a particular requirement within a specified year. For example, a company is eligible for a grant this year if it exceeded a certain sales volume in 2018.

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