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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.
A fiscal year is a 12-month accounting period. The Internal Revenue Service determined that the fiscal year for individual taxpayers runs from January 1 through December 31. However, businesses are free to choose a different fiscal year, perhaps from June 1 through May 31.