Financial Year

Meaning & Definition

Financial Year

A financial year, also called a fiscal year or accounting year, is a designated 12-month timeframe used by organizations and governments for accounting, budgeting, and financial reporting. It doesn't necessarily follow the calendar year and can start on any date, based on the organization's choice or legal obligations. In Indian system, it starts from 1st April and ends on 31st March.

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Frequently Asked Questions (FAQ's)

  1. What is financial year 2023?

    In India, the current fiscal year, also known as the current financial year, began on April 1, 2023, and ends on March 31, 2024.

  2. What is the financial year period?

    The fiscal year, synonymous with the financial year, is a 12-month accounting duration utilized by businesses and entities for financial reporting and taxation.

    In contrast to the calendar year, which spans from January 1 to December 31, the financial year can commence and conclude at various points depending on the organization's preferences or industry practices. Common financial year periods include:

    • Calendar Year: January 1 to December 31.
    • Fiscal Year: Often starts on April 1 and ends on March 31.
    • Academic Year: Common for educational institutions, starting in the fall and ending in the summer.
    • Custom Financial Year: Some organizations choose a different period based on industry cycles or internal preferences.

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