A fiscal year is a period used by businesses and governments for financial reporting and budgeting purposes, typically lasting 12 consecutive months. Unlike the calendar year, which starts on January 1st and ends on December 31st, a fiscal year can begin on any date and end 12 months later. Organizations choose their fiscal year based on various factors, including industry norms, operational cycles, and regulatory requirements. Fiscal years are commonly designated by the year in which they end (e.g., FY2023), providing a standardized reference for financial statements and reporting periods. They allow entities to align financial activities with business cycles, facilitate budget planning and performance evaluation, and comply with accounting standards and tax regulations. Understanding the fiscal year is essential for interpreting financial data, comparing results across periods, and making informed decisions about resource allocation and strategic initiatives.