LOL State and explain the relevance of The accounting period concept , the different types of accounting periods , and he limitations on their use Generally , an individual or a corporation that Keeps adequate backs and records may be permitted to elect a fiscal year 2 - month period ending on the far day of a month rather than December for the accounting burial Emberwise . a Calendar year must be used Frequently corporations can satisfy the record keeping requirements and what to use a fiscal year - Often the fiscal year conforms to a natural business year to g a summer resort 's fiscal year may end on September 10 after the close of the season ) Individuals seldom use a fiscal year because they do nal maintain the The necessary banks and records and because complications can arise as a result of changes in the tax law leg . often the Transition rules and effective dates differ for fiscal year taxpayers Generally a taxable year may not exceed 12 calendar months , However if certain requirements are met a taxpayer may elect to use an annual period that varies from 57 10 5 1 53 weeks In that case the year end must be on the same day of the week fe . E . the Tuesday falling closest in September to be the last Tuesday in September . The day of the week selected the ending the year will depend upon business considerations For example a retail business that is not open on Sundays may end its lax pear on a Sunday in that it can take an inventory without interrupting business operations