Twelve-month accounting and reporting year an organization uses for financial statements, budgeting, and related filing cycles.
A fiscal year is the twelve-month reporting year an organization uses for accounting, budgeting, and formal financial disclosure. It may match the calendar year, but it does not have to.
The concept matters because companies, governments, and nonprofits need a consistent annual cycle for preparing financial statements, closing the books, and comparing performance across periods.
The fiscal year determines:
when annual results are measured
when the year-end close occurs
how fiscal quarters are defined
when annual reporting and audit work is scheduled
Companies often choose a fiscal year that matches their operating cycle rather than defaulting to January through December.
A calendar year always runs from January 1 to December 31.
A fiscal year can end on any chosen month-end or designated year-end date, subject to law, regulation, and business practice.
Fiscal Year-End: The final day of the fiscal year.
Fiscal Quarter: One of the interim periods inside the fiscal year.
Reporting Period: The broader concept of the time span covered by financial statements.