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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 denoted by the year in which it ends, so United States of America federal government spending incurred on 14 November 2015, would belong to fiscal year 2016, operating on a fiscal calendar of OctoberâSeptember.he fiscal year may also refer to the year used for income tax reporting. Some companies choose to end their fiscal year on the same day of the week, such day being the one closest to a particular date (for example, the Friday closest to 31 December).