Fiscal year (definition)
A fiscal year is a 12-month accounting period that a business uses for financial and tax reporting purposes. A fiscal year is also known as a financial year.
A fiscal year can be different to a calendar year – it doesn’t need to start on January 1 and end on December 31. The dates of a fiscal year are determined by:
a business’s activities – a retail business may have its busiest period during the holiday season which clashes with calendar year-end reporting, so it chooses other dates
revenue cycle – a seasonal business like tourism or agriculture may choose a fiscal year that aligns better with its revenue and expenses
tax reporting requirements – the government specifies these dates
Fiscal years are named using the year when the period ends. For example, the US federal government fiscal year starts on October 1, 2024 and ends on September 30, 2025, this is referred to as FY25. Read more on how you can get prepared for the end of fiscal year.
See related terms
Handy resources
Advisor directory
You can search for experts in our advisor directory
Xero Small Business Guides
Discover resources to help you do better business
End of fiscal year
Learn more about managing your EOFY with our resources
Disclaimer
This glossary is for small business owners. The definitions are written with their requirements in mind. More detailed definitions can be found in accounting textbooks or from an accounting professional. Xero does not provide accounting, tax, business or legal advice.
