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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 your business's annual reporting period. All kinds of reports are based on the fiscal year, including taxes. The fiscal year is generally a twelve month period â although the fiscal year period may be shorter for a business that has just started or for a business that ends. For most businesses, the fiscal year runs from January 1st through December 31st.