Fiscal year

A fiscal year is a 12-month period that a business uses for accounting and financial reporting purposes. It does not have to align with the calendar year (January to December) and can begin in any month, depending on what best suits the company’s operations. For example, a business might choose a fiscal year from April 1 to March 31. During this time, the company tracks income, expenses, profits, and other financial activities. At the end of the fiscal year, businesses prepare financial statements and file taxes. Choosing the right fiscal year can improve budgeting, planning, and alignment with seasonal business cycles.