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 months 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 12 months for generating and tracking financial reports of a company or organization. This fiscal year helps to calculate taxes based on 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 12 months. 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 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, 2023 to September 30th, 2024.

Example for fiscal year

Fiscal YearPeriod of 12 months
Current Fiscal Year October 1st, 2023 to September 30th, 2024.
Next Fiscal Year October 1st, 2024 to September 30th, 2025.
Previous Fiscal Year October 1st, 2022 to September 30th, 2023.

The fiscal year may vary for corporations and businesses 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 financial year that aligns with the business cycle in those countries.

Another advantage of using a financial 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 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 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 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-

COUNTRIESFISCAL YEAR/ FINANCIAL YEAR
Afghanistan21 December – 20 December
Albaniacalendar year
Algeriacalendar year
American Samoa1 October – 30 September
Andorracalendar year
Angolacalendar year
Anguilla1 April – 31 March
Antigua and Barbuda1 April – 31 March
Argentinacalendar year
Armeniacalendar year
Arubacalendar year
Australia1 July – 30 June
Austriacalendar year
Azerbaijancalendar year
Bahamas, The1 July – 30 June
Bahraincalendar year
Bangladesh1 July – 30 June
Barbados1 April – 31 March
Belaruscalendar year
Belgiumcalendar year
Belize1 April – 31 March
Benincalendar year
Bermuda1 April – 31 March
Bhutan1 July – 30 June
Boliviacalendar year
Bosnia and Herzegovinacalendar year
Botswana1 April – 31 March
Brazilcalendar year
The British Virgin Islands1 April – 31 March
Brunei1 April – 31 March
Bulgariacalendar year
Burkina Fasocalendar year
Burma1 April – 31 March
Burundicalendar year
Cabo Verdecalendar year
Cambodiacalendar year
Cameroon1 July – 30 June
Canada1 April – 31 March
Cayman Islands1 April – 31 March
The central African Republiccalendar year
Chadcalendar year
Chilecalendar year
Chinacalendar year
Christmas Island1 July – 30 June
Cocos (Keeling) Islands1 July – 30 June
Colombiacalendar year
Comoroscalendar year
Congo, Democratic Republic of thecalendar year
Congo, Republic of thecalendar year
Cook Islands1 April – 31 March
Costa Ricacalendar year
Cote d’Ivoirecalendar year
Croatiacalendar year
Cubacalendar year
Cypruscalendar year
Czechiacalendar year
Denmarkcalendar year
Djibouticalendar year
Dominica1 July – 30 June
Dominican Republiccalendar year
Ecuadorcalendar year
Egypt1 July – 30 June
El Salvadorcalendar year
Equatorial Guineacalendar year
Eritreacalendar year
Estoniacalendar year
Eswatini1 April – 31 March
Ethiopia8 July – 7 July
European UnionNA
Falkland Islands (Islas Malvinas)1 April – 31 March
Faroe Islandscalendar year
Fijicalendar year
Finlandcalendar year
Francecalendar year
French Polynesiacalendar year
Gaboncalendar year
Gambia, Thecalendar year
Gaza Stripcalendar year
Georgiacalendar year
Germanycalendar year
Ghanacalendar year
Gibraltar1 July – 30 June
Greececalendar year
Greenlandcalendar year
Grenadacalendar year
Guam1 October – 30 September
Guatemalacalendar year
Guernseycalendar year
Guineacalendar year
Guinea-Bissaucalendar year
Guyanacalendar year
Haiti1 October – 30 September
Holy See (Vatican City)calendar year
Hondurascalendar year
Hong Kong1 April – 31 March
Hungarycalendar year
Icelandcalendar year
India1 April – 31 March
Indonesiacalendar year
Iran21 March – 20 March
Iraqcalendar year
Irelandcalendar year
Isle of Man1 April – 31 March
Israelcalendar year
Italycalendar year
Jamaica1 April – 31 March
Japan1 April – 31 March
Jersey1 April – 31 March
Jordancalendar year
Kazakhstancalendar year
Kenya1 July – 30 June
KiribatiNA
Korea, Northcalendar year
Korea, Southcalendar year
Kuwait1 April – 31 March
Kyrgyzstancalendar year
Laos1 October – 30 September
Latviacalendar year
Lebanoncalendar year
Lesotho1 April – 31 March
Liberiacalendar year
Libyacalendar year
Liechtensteincalendar year
Lithuaniacalendar year
Luxembourgcalendar year
Macaucalendar year
Madagascarcalendar year
Malawi1 July – 30 June
Malaysiacalendar year
Maldivescalendar year
Malicalendar year
Maltacalendar year
Marshall Islands1 October – 30 September
Mauritaniacalendar year
Mauritius1 July – 30 June
Mexicocalendar year
Micronesia, Federated States of1 October – 30 September
Moldovacalendar year
Monacocalendar year
Mongoliacalendar year
Montenegrocalendar year
Montserrat1 April – 31 March
Moroccocalendar year
Mozambiquecalendar year
Namibia1 April – 31 March
Nauru1 July – 30 June
Nepal16 July – 15 July
Netherlandscalendar year
New Caledoniacalendar year
New Zealand1 April – 31 March note: this is the fiscal year for tax purposes
Nicaraguacalendar year
Nigercalendar year
Nigeriacalendar year
Niue1 April – 31 March
Norfolk Island1 July – 30 June
North Macedoniacalendar year
Northern Mariana Islands1 October – 30 September
Norwaycalendar year
Omancalendar year
Pakistan1 July – 30 June
Palau1 October – 30 September
Panamacalendar year
Papua New Guineacalendar year
Paraguaycalendar year
Perucalendar year
Philippinescalendar year
Pitcairn Islands1 April – 31 March
Polandcalendar year
Portugalcalendar year
Puerto Rico1 July – 30 June
Qatar1 April – 31 March
Romaniacalendar year
Russiacalendar year
Rwandacalendar year
Saint Helena, Ascension, and Tristan da Cunha1 April – 31 March
Saint Kitts and Neviscalendar year
Saint Lucia1 April – 31 March
Saint Pierre and Miqueloncalendar year
Saint Vincent and the Grenadinescalendar year
SamoaJune 1 – May 31
San Marinocalendar year
Sao Tome and Principecalendar year
Saudi Arabiacalendar year
Senegalcalendar year
Seychellescalendar year
Sierra Leonecalendar year
Singapore1 April – 31 March
Slovakiacalendar year
Sloveniacalendar year
Solomon Islandscalendar year
SomaliaNA
South Africa1 April – 31 March
Spaincalendar year
Sri Lankacalendar year
Sudancalendar year
Surinamecalendar year
Swedencalendar year
Switzerlandcalendar year
Syriacalendar year
Taiwancalendar year
Tajikistancalendar year
Tanzania1 July – 30 June
Thailand1 October – 30 September
Timor-Lestecalendar year
Togocalendar year
Tokelau1 April – 31 March
Tonga1 July – 30 June
Trinidad and Tobago1 October – 30 September
Tunisiacalendar year
Turkeycalendar year
Turkmenistancalendar year
Turks and Caicos Islandscalendar year
Tuvalucalendar year
Uganda1 July – 30 June
Ukrainecalendar year
United Arab Emiratescalendar year
United Kingdom6 April – 5 April
United States1 October – 30 September
Uruguaycalendar year
Uzbekistancalendar year
Vanuatucalendar year
Venezuelacalendar year
Vietnamcalendar year
Virgin Islands1 October – 30 September
Wallis and Futunacalendar year
West Bankcalendar year
Western Saharacalendar year
Yemencalendar year
Zambiacalendar year
Zimbabwecalendar year

What is the meaning of FYE?

FYE stands for “fiscal year-end.” In accounting, it refers to the end of a company’s financial 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 for 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 FY, such as a 52/53-week year, which is used to align the financial 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 FY, which is the twelve-month period that the company uses for financial reporting purposes.

Faqs on Fiscal Year in the United States

1. What is the starting date of the fiscal year in the US?

The fiscal year starts on 01 October every year.

2. What is the ending date of the fiscal year in the US?

The fiscal year ends on 30th September every year.

3. What is an example of a fiscal year in the US?

This is an example of a Fiscal year (October 1st, 2023 to September 30th, 2024).

4. Can anyone use the calendar year as the fiscal year?

Yes, Any company or organization can use a calendar year as a fiscal year. ( January 1st, 2023 to March 31th, 2024)

By larry Brown

A senior accountant, and banking & finance expert, with five years long experience in banking, finance, Investment, and money management.

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