A fiscal year is a 12-month period used by governments, businesses, and nonprofits for financial reporting, budgeting, and tax purposes
. It is also known as a financial year
. The fiscal year can start on any date, not necessarily on January 1, and can vary depending on the specific needs and revenue cycle of an organization
. For example, universities often begin and end their fiscal years according to the school year
. Some key aspects of a fiscal year include:
- Dates : The dates of a fiscal year are determined by a business's activities, revenue cycle, and tax reporting requirements
- Naming : Fiscal years are named using the year when the period ends, such as "FY24" for a fiscal year that runs from April 1, 2023, to March 31, 2024
- Purpose : Fiscal years are used for financial reporting, budgeting, and tax purposes, and they are an important concern for accounting purposes because they are involved in federal tax filings, budgeting, and financial statements
In the United States, the federal government's fiscal year is the 12-month period beginning on October 1 and ending on September 30 the following year
. The identification of a fiscal year is the calendar year in which it ends, so the current fiscal year is 2024, often written as "FY2024" or "FY24"
