Glossary
Definition
Fiscal Year
A 12-month accounting period used by companies for financial reporting.
A fiscal year (FY) is a 12-month period used by a company or government for financial reporting and accounting. It does not need to align with the calendar year. For example, Apple's fiscal year ends in September; Walmart's ends in January. Fiscal year convention affects when revenue, profit, and other metrics are reported.
Frequently Asked Questions
Why do companies use a non-calendar fiscal year?
Many businesses choose a fiscal year that aligns with their natural business cycle. Retailers often use a January year-end to capture holiday sales in one period; agricultural companies may align with harvest seasons.