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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.
Fiscal Year. In finance, a fiscal year is a 12-month period that ends on the last day of any month except December. A fiscal year may end on April 30, for instance.Such a fiscal year would start on May 1 of the previous year, since it must cover 12 full consecutive months.For instance, the fiscal year of a firm that has ended on April 30, 2012, would have begun on May 1, 2011. To find the start date of a fiscal year, add one day to the end date and then go back a full year.ost businesses use the calendar year for financial calculations. If such a firm refers to its 2012 full-year profits, for example, it is talking about the total money it has earned between January 1, 2012, and December 31, 2012.