
Fiscal Year
As we know a period is required for getting a financial report of a company or organization. So a period was chosen as a fiscal year.
It is a 12-month period used by companies and organizations to track their financial performance. In the United States, a fiscal year does not necessarily coexist with the calendar year (January 1st to December 31st). Instead, companies can choose to use any 12-month period as their fiscal year, as long as it is consistent from year to year.
What is the meaning of Fiscal Year?
A fiscal year means a period of 12 months for generating and tracking financial reports of a company or organization. This fiscal year helps to calculate taxes on the basis of fiscal year income or performance. After calculation, that tax is paid to the US government.
What is the exact period of a fiscal year?
A fiscal year has a 12-month period. In the US, most companies and organizations use one of two fiscal year periods: the calendar year (1st January to 31st December) or the fiscal year (1st October to 30th September). The federal government uses the fiscal year period, which means that the federal budget and other financial reports are prepared using a fiscal year timeline.
What is the current fiscal year?
For the US government, the fiscal year runs from October 1st to September 30th of the following year.
So, for example, the current fiscal year for the US government is October 1st, 2022 to September 30th, 2023.
Example for fiscal year
Fiscal Year | Period of 12 months |
Current Fiscal Year | October 1st, 2022 to September 30th, 2023. |
Next Fiscal Year | October 1st, 2023 to September 30th, 2024. |
Previous Fiscal Year | October 1st, 2021 to September 30th, 2022. |
For corporations and businesses, the fiscal year may vary and is not necessarily tied to the government’s fiscal year. Each company can choose its fiscal year period based on its needs and operations. Companies often report their fiscal year-end dates in their financial statements, which can be found in their annual reports or filings with the Securities and Exchange Commission (SEC).
What is the purpose of using fiscal year?
A fiscal year is most commonly used for accounting purposes to prepare financial statements.
Why Do Companies Use Fiscal Years?
The primary reason that companies use fiscal years is to align their financial reporting with their business operations. For example, a company that experiences seasonal fluctuations in revenue may choose to use a fiscal year that ends in a slower month, so that it can more accurately track its financial performance from one year to the next.
In addition, a company that operates in multiple countries may choose to use a fiscal year that aligns with the business cycle in those countries.
Another advantage of using a fiscal year is that it allows companies to spread out their accounting workload throughout the year, rather than having to complete all of their financial reporting at the end of the calendar year.
How Are Fiscal Years Used in the US?
In the US, most companies and organizations use one of two fiscal year periods: the calendar year (January 1st to December 31st) or the fiscal year (October 1st to September 30th). The federal government uses the fiscal year period, which means that the federal budget and other financial reports are prepared using a fiscal year timeline.
Some companies may choose to use a different fiscal year period to better align with their business operations. For example, a retailer that experiences a surge in sales during the holiday season may choose to use a fiscal year that ends in January, so that they can more accurately track their holiday sales.
It’s important to note that regardless of the fiscal year period chosen, companies must still adhere to generally accepted accounting principles (GAAP) and other accounting standards set forth by regulatory bodies.
Is the Fiscal Year the same for every country?
No, The fiscal year can be variable or different according to the government of the country. Because every country has different income tax rules. So that countries can have different financial years or fiscal years.
The fiscal year and the financial year are synonyms for each other. These both are a period of 12 months for accounting, budgeting, or financial reporting. The USA uses the term fiscal year for its financial reporting and on the other hand, other countries use the term fiscal year or financial year for their financial reporting.
So, the fiscal year is a period of 12 months for reporting financial statements of accounts and budgets. And it can be different for different countries. It can be seen in the given table below-
COUNTRIES | FISCAL YEAR/ FINANCIAL YEAR |
Afghanistan | 21 December – 20 December |
Albania | calendar year |
Algeria | calendar year |
American Samoa | 1 October – 30 September |
Andorra | calendar year |
Angola | calendar year |
Anguilla | 1 April – 31 March |
Antigua and Barbuda | 1 April – 31 March |
Argentina | calendar year |
Armenia | calendar year |
Aruba | calendar year |
Australia | 1 July – 30 June |
Austria | calendar year |
Azerbaijan | calendar year |
Bahamas, The | 1 July – 30 June |
Bahrain | calendar year |
Bangladesh | 1 July – 30 June |
Barbados | 1 April – 31 March |
Belarus | calendar year |
Belgium | calendar year |
Belize | 1 April – 31 March |
Benin | calendar year |
Bermuda | 1 April – 31 March |
Bhutan | 1 July – 30 June |
Bolivia | calendar year |
Bosnia and Herzegovina | calendar year |
Botswana | 1 April – 31 March |
Brazil | calendar year |
The British Virgin Islands | 1 April – 31 March |
Brunei | 1 April – 31 March |
Bulgaria | calendar year |
Burkina Faso | calendar year |
Burma | 1 April – 31 March |
Burundi | calendar year |
Cabo Verde | calendar year |
Cambodia | calendar year |
Cameroon | 1 July – 30 June |
Canada | 1 April – 31 March |
Cayman Islands | 1 April – 31 March |
The central African Republic | calendar year |
Chad | calendar year |
Chile | calendar year |
China | calendar year |
Christmas Island | 1 July – 30 June |
Cocos (Keeling) Islands | 1 July – 30 June |
Colombia | calendar year |
Comoros | calendar year |
Congo, Democratic Republic of the | calendar year |
Congo, Republic of the | calendar year |
Cook Islands | 1 April – 31 March |
Costa Rica | calendar year |
Cote d’Ivoire | calendar year |
Croatia | calendar year |
Cuba | calendar year |
Cyprus | calendar year |
Czechia | calendar year |
Denmark | calendar year |
Djibouti | calendar year |
Dominica | 1 July – 30 June |
Dominican Republic | calendar year |
Ecuador | calendar year |
Egypt | 1 July – 30 June |
El Salvador | calendar year |
Equatorial Guinea | calendar year |
Eritrea | calendar year |
Estonia | calendar year |
Eswatini | 1 April – 31 March |
Ethiopia | 8 July – 7 July |
European Union | NA |
Falkland Islands (Islas Malvinas) | 1 April – 31 March |
Faroe Islands | calendar year |
Fiji | calendar year |
Finland | calendar year |
France | calendar year |
French Polynesia | calendar year |
Gabon | calendar year |
Gambia, The | calendar year |
Gaza Strip | calendar year |
Georgia | calendar year |
Germany | calendar year |
Ghana | calendar year |
Gibraltar | 1 July – 30 June |
Greece | calendar year |
Greenland | calendar year |
Grenada | calendar year |
Guam | 1 October – 30 September |
Guatemala | calendar year |
Guernsey | calendar year |
Guinea | calendar year |
Guinea-Bissau | calendar year |
Guyana | calendar year |
Haiti | 1 October – 30 September |
Holy See (Vatican City) | calendar year |
Honduras | calendar year |
Hong Kong | 1 April – 31 March |
Hungary | calendar year |
Iceland | calendar year |
India | 1 April – 31 March |
Indonesia | calendar year |
Iran | 21 March – 20 March |
Iraq | calendar year |
Ireland | calendar year |
Isle of Man | 1 April – 31 March |
Israel | calendar year |
Italy | calendar year |
Jamaica | 1 April – 31 March |
Japan | 1 April – 31 March |
Jersey | 1 April – 31 March |
Jordan | calendar year |
Kazakhstan | calendar year |
Kenya | 1 July – 30 June |
Kiribati | NA |
Korea, North | calendar year |
Korea, South | calendar year |
Kuwait | 1 April – 31 March |
Kyrgyzstan | calendar year |
Laos | 1 October – 30 September |
Latvia | calendar year |
Lebanon | calendar year |
Lesotho | 1 April – 31 March |
Liberia | calendar year |
Libya | calendar year |
Liechtenstein | calendar year |
Lithuania | calendar year |
Luxembourg | calendar year |
Macau | calendar year |
Madagascar | calendar year |
Malawi | 1 July – 30 June |
Malaysia | calendar year |
Maldives | calendar year |
Mali | calendar year |
Malta | calendar year |
Marshall Islands | 1 October – 30 September |
Mauritania | calendar year |
Mauritius | 1 July – 30 June |
Mexico | calendar year |
Micronesia, Federated States of | 1 October – 30 September |
Moldova | calendar year |
Monaco | calendar year |
Mongolia | calendar year |
Montenegro | calendar year |
Montserrat | 1 April – 31 March |
Morocco | calendar year |
Mozambique | calendar year |
Namibia | 1 April – 31 March |
Nauru | 1 July – 30 June |
Nepal | 16 July – 15 July |
Netherlands | calendar year |
New Caledonia | calendar year |
New Zealand | 1 April – 31 March note: this is the fiscal year for tax purposes |
Nicaragua | calendar year |
Niger | calendar year |
Nigeria | calendar year |
Niue | 1 April – 31 March |
Norfolk Island | 1 July – 30 June |
North Macedonia | calendar year |
Northern Mariana Islands | 1 October – 30 September |
Norway | calendar year |
Oman | calendar year |
Pakistan | 1 July – 30 June |
Palau | 1 October – 30 September |
Panama | calendar year |
Papua New Guinea | calendar year |
Paraguay | calendar year |
Peru | calendar year |
Philippines | calendar year |
Pitcairn Islands | 1 April – 31 March |
Poland | calendar year |
Portugal | calendar year |
Puerto Rico | 1 July – 30 June |
Qatar | 1 April – 31 March |
Romania | calendar year |
Russia | calendar year |
Rwanda | calendar year |
Saint Helena, Ascension, and Tristan da Cunha | 1 April – 31 March |
Saint Kitts and Nevis | calendar year |
Saint Lucia | 1 April – 31 March |
Saint Pierre and Miquelon | calendar year |
Saint Vincent and the Grenadines | calendar year |
Samoa | June 1 – May 31 |
San Marino | calendar year |
Sao Tome and Principe | calendar year |
Saudi Arabia | calendar year |
Senegal | calendar year |
Seychelles | calendar year |
Sierra Leone | calendar year |
Singapore | 1 April – 31 March |
Slovakia | calendar year |
Slovenia | calendar year |
Solomon Islands | calendar year |
Somalia | NA |
South Africa | 1 April – 31 March |
Spain | calendar year |
Sri Lanka | calendar year |
Sudan | calendar year |
Suriname | calendar year |
Sweden | calendar year |
Switzerland | calendar year |
Syria | calendar year |
Taiwan | calendar year |
Tajikistan | calendar year |
Tanzania | 1 July – 30 June |
Thailand | 1 October – 30 September |
Timor-Leste | calendar year |
Togo | calendar year |
Tokelau | 1 April – 31 March |
Tonga | 1 July – 30 June |
Trinidad and Tobago | 1 October – 30 September |
Tunisia | calendar year |
Turkey | calendar year |
Turkmenistan | calendar year |
Turks and Caicos Islands | calendar year |
Tuvalu | calendar year |
Uganda | 1 July – 30 June |
Ukraine | calendar year |
United Arab Emirates | calendar year |
United Kingdom | 6 April – 5 April |
United States | 1 October – 30 September |
Uruguay | calendar year |
Uzbekistan | calendar year |
Vanuatu | calendar year |
Venezuela | calendar year |
Vietnam | calendar year |
Virgin Islands | 1 October – 30 September |
Wallis and Futuna | calendar year |
West Bank | calendar year |
Western Sahara | calendar year |
Yemen | calendar year |
Zambia | calendar year |
Zimbabwe | calendar year |
What is the meaning of FYE?
FYE stands for “fiscal year-end.” In accounting, it refers to the end of a company’s fiscal year, which is the twelve-month period that the company uses for financial reporting purposes.
During FYE, a company will close its financial books, prepare financial statements, and conduct an audit or review of its financial records. This process allows the company to assess its financial performance over the course of the year, make any necessary adjustments, and report its financial results to shareholders, investors, and other stakeholders.
The FYE can vary from company to company, but it is typically set to coincide with the end of a calendar quarter, such as December 31st, March 31st, or June 30th. In some cases, a company may choose to have a non-standard fiscal year, such as a 52/53-week year, which is used to align the fiscal year with the company’s operations or to meet regulatory requirements.
Overall, FYE is an important part of the accounting process as it provides a clear and standardized period for assessing a company’s financial health and communicating this information to interested parties.
What is the meaning of FYM?
FYM stands for “fiscal year-month.” In accounting, it refers to any month of a company’s fiscal year, which is the twelve-month period that the company uses for financial reporting purposes.
Faqs on Fiscal Year in the United States
The fiscal year starts on 01 October every year.
The fiscal year ends on 30th September every year.
This is an example of a Fiscal year (October 1st, 2023 to September 30th, 2024).
Yes, Any company or organization can use a calendar year as a fiscal year. ( January 1st, 2023 to March 31th, 2024)