Definition of Fiscal Year (FY)

accounting period covering 12 consecutive months, 52 consecutive weeks, 13 four-week periods, or 365 consecutive days, at the end of which the books are closed and profit or loss is determined. A company's fiscal year is often, but not necessarily, the same as the calendar year. A seasonal business will frequently select a fiscal rather than a calendar year, so that its year-end figures will show it in its most liquid condition, which also means having less inventory to verify physically. The FY of the U.S. government ends September 30.