---
title: "Fiscal year"
description: "What a fiscal year is, how it differs from the calendar year, common fiscal year ends, how to choose one, and what happens at year end in the books."
canonical: https://ledgeriano.com/glossary/fiscal-year
language: en
publisher: "Ledgeriano"
updated: 2026-11-06
---

# Fiscal year

> What a fiscal year is, how it differs from the calendar year, common fiscal year ends, how to choose one, and what happens at year end in the books.

A fiscal year is the accounting period, usually twelve months, for which a business prepares its annual financial statements and closes its books. It does not have to match the calendar year: many companies use 1 April to 31 March or 1 July to 30 June. The year-end date drives closing, audit and tax deadlines.

Businesses choose fiscal years for practical reasons: to close after the busy season (retailers often end in January or February), to match a parent company or tax year, or to give the finance team a quieter month for the year-end close. First and last years can be shorter or longer than twelve months when a business starts or changes its year end, subject to local law.

Each fiscal year has its own entries, numbering and closing. At year end, income and expense accounts are closed to [retained earnings](https://ledgeriano.com/glossary/retained-earnings), and an [opening entry](https://ledgeriano.com/glossary/opening-entry) carries balance sheet balances into the next year.

In Ledgeriano each business sets its own fiscal year start and end, so companies in one group can keep different year ends. The [year-end closing guide](https://ledgeriano.com/guides/year-end-closing) explains the full process.

## Example: common fiscal years

Fiscal years are usually named after the year in which they end.

| Start | End | Name | Typical users |
| --- | --- | --- | --- |
| 1 Jan 2026 | 31 Dec 2026 | FY2026 | Most companies |
| 1 Apr 2026 | 31 Mar 2027 | FY2027 | Many UK, Indian and Japanese companies |
| 1 Jul 2026 | 30 Jun 2027 | FY2027 | Many Australian companies |
| 1 Feb 2026 | 31 Jan 2027 | FY2026 or FY2027 | Retailers |

### Can I change my fiscal year end?

Usually yes, with notice to the company registry and tax authority. It creates one short or long transition period, which must be disclosed in the statements.

### Is the fiscal year the same as the tax year?

Often, but not always. Personal tax years are fixed by law in many countries, while companies can usually choose their accounting year end.

Guide: https://ledgeriano.com/guides/year-end-closing