Fiscal year

Fiscal year – A corporation's accounting year. Due to the nature of their particular business, some companies donot use the calendar year fortheir bookkeeping. A typical example is the department store that finds December 31too early a date to close its books after the Christmas rush. For that reason many stores wind up their accounting year January 31. Their fiscal year, therefore, runs from February 1 of one year through January 31 of the next. The fiscal year of other companies may run from July 1 through the following June 30. Most companies, though, operate on a calendar year basis.