Fiscal Year (FY)

A fiscal year (FY) is a 12-month period used by organizations and governments for financial planning, reporting, and budgeting, which might differ from the calendar year (January to December). For example, a company's FY could run from April 1 to March 31 of the following year. This period helps organizations manage their financial activities more effectively, track performance, and prepare taxes. Different entities may choose their FY start and end dates based on their operational cycles or industry standards. Essentially, the FY provides a consistent timeframe for financial assessment and decision-making.