Fiscal Year

Beginner

A fiscal year is the twelve-month period a business or government uses for its accounting and financial reporting. It may or may not match the calendar year.

Many companies use a fiscal year that runs from January to December, the same as the calendar year. Others choose different dates that suit their business. A retailer might end its fiscal year in January, after the busy holiday season, so that the whole season and its returns fall in the same year.

Governments also use fiscal years for budgets and taxes, and these vary by country. Some run from April to March, others from July to June or October to September.

Fiscal years are usually named by the year in which they end. A fiscal year running from 1 July 2025 to 30 June 2026 is often called fiscal year 2026, or FY2026.

When comparing companies, it is important to check their fiscal years. Two businesses with different year-ends may be reporting on periods that do not fully overlap, which can affect comparisons, especially when economic conditions change quickly.

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