What is a Fiscal Year?

A fiscal year is a 12-month period defined by a company or government for financial reporting and accounting purposes.

A fiscal year doesn’t necessarily follow the same dates as the calendar year, from January 1st to December 31st. It can start and end on any dates chosen by the company, for example, from Apris 1st to March 31st.

The choice often depends on the nature of the business or regulatory requirements.

For example, retail in the U.S. typically ends the fiscal year on January 31st in order to include sales from the holiday season.

Whereas family offices may adhere to a calendar year in order to begin strategic planning in January and close the fiscal year in December with reporting.

Businesses use the fiscal year to prepare budgets, track revenues and expenses, calculate taxes, and produce annual financial statements like balance sheets and income statements. T

he chosen fiscal year determines the timing of financial reporting and tax filings, making it an essential element of accurate accounting and compliance management.

On the balance sheet and income statement, a fiscal year defines the reporting period for revenues, expenses, assets, and liabilities.

Publicly listed companies disclose results at the end of every fiscal year.

Accountants have to align audit schedules, reconciliations, and disclosures with the fiscal year in order to remain compliant with regulations.

2025 Fiscal Quarters

A fiscal year can be divided in quarters to remain transparent, compliant, and plan taxes proactively.

For example, a familiy office or CPA firm could define the fiscal year from January to December.

• Q1 → January-March

During this period, accountants focus on year-end closing and tax preparation.

This involves finalzing financial statements for the previous year, filing tax returns, reviewing investment performance, and begin budget planning.

• Q2 → April-June

At this point, accountants begin estimations for taxes, and file Q1’s tax payments.

Q1’s financial statements should be reviewed in order to analyze cash flow and liquidity to plan investments.

• Q3 → July-September

The focus during Q3 should be mid-year reviews and tax optimizations.

Accountant also file Q2’s tax payments and forecast budgets and update strategic plans.

CPA firms should prepare mid-year reports for clients and adjust withholding or quarterly filings.

• Q4 → October-December

The last quarter of the fiscal year is dedicates to year-end tax planning and reporting alignment where accountants also review entity structures and compliance for the upcoming year.

At the end of the fiscal year, distributions and reports are prepared for investors, clients, or beneficiaries.

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