fiscal year
A 12-month period used by governments and businesses for accounting and budget purposes, which may or may not align with the calendar year.
Example
“Apple's fiscal year ends in September, not December like the calendar year.”
Memory Tip
FISCAL YEAR = the financial YEAR. Companies choose when their year starts — doesn't have to be January.
Why It Matters
Understanding fiscal years helps you track when taxes are due, when financial statements are released, and when budget decisions affect you. If a company or government uses a fiscal year different from the calendar year, knowing this helps you plan your finances and anticipate major financial announcements at the right times.
Common Misconception
Many people assume that every organization uses the calendar year from January to December as their fiscal year. In reality, companies and governments often choose different 12-month periods based on their business cycles, which means their financial reports and tax deadlines do not align with the regular calendar.
In Practice
Apple Inc. has a fiscal year that runs from October to September, so their fiscal year 2024 ends in September 2024 rather than December 2024. This means Apple reports its annual earnings and files financial statements in October 2024, several months before the calendar year ends, which is different from businesses using January to December cycles.
Etymology
Fiscal (relating to public finances) + year — the financial year of a business or government.
Common Misspellings
Small business accounting made simple
Related Terms
More in accounting
Other accounting terms you should know
See Also
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