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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 period that a company or government uses for accounting and financial statement purposes. A fiscal year does not always begin in January and end in December to match the calendar year; it may run over any period of 12 months. Many companies choose fiscal-year periods that factor in their busy times of the year and other unique financial circumstances.