What is a fiscal year?
A fiscal year (FY), or financial year, is the period covered by annual [financial statements](/glossary/financial-statements) and tax returns. It's labelled by the year in which it ends, so a year ending 31 March 2026 is FY2026.
Calendar year vs fiscal year
Many businesses use 1 January to 31 December. Others choose a different year-end to:
- Avoid closing the books during their busiest season (retailers often end in January or February)
- Align with a parent company or government year
- Match natural business cycles, such as academic years or harvests
Some companies use a 52–53 week year that always ends on the same weekday.
Examples of government fiscal years
- US federal government: 1 October to 30 September
- UK government: 1 April to 31 March
- Nigeria: follows the calendar year
Choosing and changing a fiscal year
New companies usually choose a year-end when they register. Changing it later may require approval from the tax authority or company registry, and the transition creates a short or long period.
Why it matters
The fiscal year sets deadlines for [year-end close](/glossary/year-end-close), audits, tax returns and statutory filings, and it frames annual budgets and performance targets.