What is a fiscal year?
A fiscal year is a 12 month period used for financial reporting and taxation. It does not need to align with the calendar year.
Why do businesses use a fiscal year?
It allows businesses to align reporting with operational cycles and industry patterns.
How does a fiscal year differ from a calendar year?
A calendar year runs from January to December. A fiscal year can start in any month.
Who sets the fiscal year?
Businesses choose their fiscal year, subject to regulatory requirements.
How does fiscal year affect reporting?
All financial reporting and tax calculations align with the chosen fiscal period.