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Fiscal Year
Term category: Finance/Accounting
In 10 words or less: The end of a company's one-year accounting period.

Definition: The 12-month period used for accounting purposes within companies. It doesn't necessarily begin on January 1^st.

StockJargon Advice: A company has the ability to determine when they want their accounting year to end. Companies typically use the end of their strongest quarter as their fiscal year end. At this time, the books are closed and all profits and losses are calculated.

The reason companies try to end on their strongest quarter is because if their numbers are lackluster during the rest of the year, they can still "pull out a good year" by ending well.

Many fiscal years end December 31st. However, some companies may end in March, June, etc.

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