Fiscal Year

Fiscal Year A Fiscal Year is a 12-month accounting period used by a business, organization, or government for financial reporting, budgeting, and tax assessment. It serves as the official period for measuring annual income, expenses, and performance, and for preparing financial statements such as the balance sheet and profit & loss account. Unlike the calendar year (January to December), a fiscal year can begin and end on any chosen dates, depending on the organization’s operational or regulatory requirements. Governments also adopt fiscal years to plan and monitor public finances, spending, and revenue collection.

Example: In India, the fiscal year runs from April 1 to March 31 of the following year. For instance, FY 2024–25 refers to the period from 1 April 2024 to 31 March 2025.