Fiscal year
Encyclopedia of Business Terms and Methods, ISBN 978-1-929500-10-9. Copyright © 2011. Marty J.Schmidt.Revised 13 January 2012.
The fiscal year is the accounting or tax year of a company or the government, as opposed to the calendar year. Income statements summarize earnings over the fiscal year, and balance sheets usually summarize the company’s assets, liabilities and owner’s equities at the end of the fiscal year.
Managers at all levels usually prefer to see cost of ownership or cost/benefit analyses organized around a fiscal year time structure because their financial reporting (and measurement), budgeting, and sales performance accounting are organized around fiscal years, quarters, and months.
A company's fiscal year may coincide with the calendar year (as, for example with IBM), but companies are free to choose other starting and end points for their fiscal year if they wish when the start business. Hewlett Packard's fiscal year begins 1 November and runs to 31 October. Siemens fiscal year begins 1 October and ends 30 September, while other companies choose still other starting and ending months.
[ Encyclopedia ] [ Business Case Books & Tools ] [ Home ]
© Copyright Solution Matrix Ltd and 
Marty J. Schmidt+ 2004 - 2012. Legal notice. Unauthorized use or publication strictly prohibited under United States and International Copyright Law. Request permission to use.
Solution Matrix Ltd
Solution Matrix Germany
Solution Matrix Asia
Solution Matrix Pacific