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Simple English definitions for legal terms
fiscal year accounting period
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A quick definition of fiscal year accounting period:
Fiscal year accounting period is a 12-month period that a company uses to keep track of its money. This helps the company make reports about how much money it spent and earned. The fiscal year starts on the first day of a month and ends on the last day of the twelfth month.
A more thorough explanation:
Fiscal year accounting period is a 12-month period that a company uses for its accounting purposes. During this period, the company reports its spending and income. It helps in the preparation of company financial statements. The fiscal year is measured from the first day of the month through the last day of the twelfth month.
- ABC Corporation's fiscal year runs from July 1st to June 30th of the following year.
- XYZ Inc.'s fiscal year starts on October 1st and ends on September 30th of the next year.
These examples illustrate how companies can choose any 12-month period as their fiscal year. It does not have to coincide with the calendar year. By having a set fiscal year, companies can better track their financial performance and make informed decisions about their future.