Fiscal Year-End

Definition

Fiscal year-end is the last day of an entity’s 12-month accounting period. It marks the close of the reporting cycle used for financial statements, budgeting, and tax filings. A fiscal year may align with the calendar year (ending December 31) or follow any other 12-month period chosen to suit the business or government.

Why organizations choose a fiscal year-end

Companies, nonprofits, and governments choose fiscal year dates to match seasonal business cycles, simplify budgeting, and align reporting with operational peaks and troughs. Picking an appropriate fiscal year-end can make it easier to:

• Capture the full effect of peak sales or seasonal activity in a single reporting period.
• Avoid preparing year-end financials during the busiest operational times.
• Coordinate internal budgeting and external reporting schedules.

Examples

Public companies vary widely:
* Apple ends its fiscal year on the last Saturday of September.
* Microsoft’s fiscal year ends June 30.
* Walmart’s fiscal year ends January 31.

Tip: When comparing companies with different fiscal years, ensure you compare equivalent reporting periods to avoid misleading conclusions.

Fiscal year vs. calendar year

A calendar year runs from January 1 to December 31. Businesses may adopt a non-calendar fiscal year to better reflect their operating cycle—for example, retailers often end their fiscal year after the holiday season (e.g., January 31) so annual results include the full holiday period and year-end reporting isn’t disrupted by heavy sales activity.

Companies choose their fiscal year when they incorporate; changing it typically requires approval from tax authorities.

Tax and filing implications

Tax reporting generally follows the entity’s fiscal year. In many jurisdictions, including the U.S., businesses that use a fiscal year other than the calendar year may treat that fiscal year as their tax year and file based on that schedule. A common U.S. deadline is the 15th day of the fourth month after a corporation’s fiscal year-end. Exceptions and special rules can apply to certain entity types (for example, many S corporations follow different filing rules), so consult tax guidance or a tax advisor for specific deadlines.

U.S. federal government fiscal year

The U.S. federal government’s fiscal year runs from October 1 through September 30.

What happens at fiscal year-end

At year-end organizations typically:
* Reconcile accounts and close ledgers.
* Make adjusting journal entries (accruals, deferrals, depreciation, inventory adjustments).
* Prepare and audit financial statements and annual reports (e.g., a public company’s Form 10‑K covers its fiscal year).
* Calculate taxable income and finalize tax returns or prepare for filing.

How to choose a fiscal year-end

Considerations include:
* Seasonality of revenue and expenses.
* Industry reporting norms.
* Operational convenience for preparing year-end financials.
* Tax and regulatory implications.

Key takeaways

• Fiscal year-end is the final day of a company’s 12-month accounting period and may differ from the calendar year.
• Organizations select fiscal year-ends to align reporting with business cycles and operational needs.
• Fiscal year choice affects financial reporting schedules and tax filing deadlines.
• The U.S. federal fiscal year is October 1–September 30.

Sources: Internal Revenue Service guidance and corporate filings (SEC Forms 10‑K).