Fiscal Year

A Fiscal Year (FY) is a one-year period that companies and governments use for financial reporting and Budgeting. It may not align with the calendar year, allowing organizations to choose a period that best fits their operational needs.

For instance, a fiscal year may run from July 1 to June 30, often used by educational institutions. Another example is the U.S. federal government’s fiscal year, which begins on October 1 and ends on September 30 of the following year.

Companies may also adopt different fiscal years