financial year

A financial year, also known as a fiscal year, is a 12-month period used by organizations and governments for accounting and financial reporting. It may or may not align with the calendar year (January to December). Businesses choose their financial year based on operational cycles or regulatory requirements, and it helps track income, expenses, and profitability over that period. At the end of the financial year, financial statements are prepared to assess the organization’s financial health, and taxes are calculated accordingly. Essentially, it provides a consistent timeframe for financial planning, analysis, and reporting.