A fiscal year is a one year period of time that a company or government uses for accounting purposes and preparation of its financial statements.
 | | Term of the Day | Words to Know | | |  | | Fiscal Year (FY) | A fiscal year is a one-year period that companies and governments use for financial reporting and budgeting. A fiscal year is most commonly used for accounting purposes to prepare financial statements. Although a fiscal year can start on January 1st and end on December 31st, not all fiscal years correspond with the calendar year. For example, universities often begin and end their fiscal years according to the school year.
A fiscal year is important to publicly-traded corporations and their investors since it includes revenue and earnings making year-to-year comparisons possible. For tax purposes, the Internal Revenue Service (IRS) allows companies to be either calendar-year taxpayers or fiscal-year taxpayers. | | Read More » | | Related to "Fiscal Year (FY)" | | | | Year to Date | | Year to date (YTD) refers to the period of time beginning the first day of the current calendar year or fiscal year up to the current date. | | Read More » | | | Quarter - Q1, Q2, Q3, Q4 | | A quarter is a three-month period on a company's financial calendar that acts as a basis for the reporting of earnings and the paying of dividends. | | Read More » | | | Tax Year | | Tax year refers to the 12-month period covered by a taxpayer's annual tax return. | | Read More » | | | Internal Revenue Service | | The Internal Revenue Service (IRS) is the U.S. federal agency that oversees the collection of taxes—primarily income taxes—and the enforcement of tax laws. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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