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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.
Updated March 03, 2017. Definition: Fiscal Year (FY) is a twelve-month period that an organization uses to report its finances. The twelve-month period starts at the beginning of a quarter, such as January 1, April 1, July 1 or October 1. The organization is a government, business or nonprofit.