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A fiscal year is an accounting period. The accounting period can either be the calendar year from January to December or another 12-consecutive-month period selected by a company. Fiscal years are important because they are the period by which companies generate a variety of financial data and determine taxes, profits and expenses.
The fiscal year is an annual accounting period. Most state and local governments begin their. fiscal year on July 1. Since 1974, the federal governmentâs fiscal year has begun on October 1. and ended on September 30. Most states budget on a July 1âJune 30 fiscal year. A fiscal year is. designated by the calendar year in which it ends.