Published: March 2021
Fiscal year (FY)
A fiscal year (FY) is a twelve-month period chosen by an organization to budget and report its finances.
Fiscal years depend on the unique revenue cycle of a business and may not always line up with a calendar year. For example, a university’s FY usually corresponds with the academic calendar, while nonprofits commonly align their FY with grant award disbursements.
Designated FYs are especially important for publicly traded corporations and their investors. Standardizing the period by which revenue and earnings are measured allows for accurate year-to-year comparisons of a corporation’s finances.