Fiscal Year
Fiscal Year (Definition)
A fiscal year is a one-year period that companies and governments use for financial reporting and budgeting.
Key aspects of a fiscal year include:
- May or may not coincide with the calendar year
- Often chosen to align with natural business cycles or regulatory requirements
- Used for accounting purposes, financial statements, and budgeting
- Important for tax reporting and compliance
- Allows for year-over-year comparisons of financial performance
- Can impact the timing of financial events like audits and shareholder meetings
- May differ between entities, even within the same industry or country
Understanding fiscal years is crucial for accurate financial reporting, effective budgeting, and compliance with financial regulations.