Fiscal Year

What is a Fiscal Year?

A Fiscal Year is a 12-month period used for accounting purposes by organizations and governments to prepare financial reports, statements, and budgets. It differs from a calendar year, as it can start and end on any date agreed upon by the entity, not necessarily from January 1 to December 31.

Short Description: A one-year period used by governments and businesses for financial reporting and budgeting, which may not coincide with the calendar year.

• Customizable Start Date: Organizations choose a fiscal year start date that aligns with their business cycle or statutory requirements.
• Financial Reporting: Used to report financial information such as income, expenses, and balance sheets.
• Budget Planning: Essential for planning budgets and forecasting future financial performance.

Fiscal years are crucial for comparing financial performance over different periods and ensuring that tax filings comply with regulatory cycles.