The fiscal year of an organization or government is the year during which the results of a business activity are summarized in an annual report. The fiscal year may coincide with the calendar year, though it does not have to. It usually extends over a period of 12 months.
The fiscal year is used for budgeting, planning, reporting, and collation of business results.
One of the most important fiscal years in the United States is the one for the U.S. government. In contrast to a calendar year, the government’s fiscal year starts on October 1 of each year and ends on September 30 of the following year.