In the US, the fiscal year ends on September 30 and begins again on October 1. But there’s far more to year-end accounting than simply remembering these dates.
For instance, what exactly is a fiscal year, and how is it different from the financial year? Why does it matter? And, come year-end, what does it mean for your business?
In this article, we’ll clarify the meanings of all the various terms, explain the significance of a fiscal year, and provide actionable insights to help you streamline your year-end processes. So let’s jump straight in.
What is a fiscal year?
A fiscal year is the 12-month period that your business uses for financial reporting and accounting purposes. Crucially, you can choose your own start and end dates based on how your business works.
For example:
A retail business might end its fiscal year in January after the seasonal holiday rush.
A school might follow an academic calendar, ending in June or July.
Most other businesses might stick with the calendar year (January to December) to keep things simple.
