Fiscal Year

Fiscal year means the 12-month period a company or government uses for accounting and financial reporting. In simple terms, a fiscal year is a business year used for financial records. Fiscal years are important because not every company’s financial year matches the calendar year. Investors need to know the fiscal year to understand reports, comparisons, and guidance correctly. For example, a company’s fiscal year may end in September instead of December. A fiscal year is not always the same as a calendar year. A calendar year runs from January to December, while a fiscal year can follow a different 12-month period.