A fiscal year is basically a one year period used for calculating financial statements related to an organization. It is used as a reference period to adjudge an organization’s recent financial performance. A fiscal year need not coincide with a calendar year. In some countries, the fiscal year is from April 1 to March 31 next year. In others it is 1 July to June 30 next year and in some, it is actually consistent with the calendar year – 1 January to 31 December.
The twisted bit is – in several parts of the world, businesses are allowed to select their own fiscal year! Continue reading