ERP Internals/Glossary/Fiscal Year

A period of one year after which major (often audited) financial statements are prepared. The activity involved in preparing these statements is commonly referred to as "year end". Many enterprises has a fiscal year that starts January 1 and ends December 31. Some enterprises have a fiscal year that starts at another time during the year (e.g. Oct 1 - Sep 30). Normally once a fiscal year has been established it is not changed.

A fiscal year is sub-divided in several accounting periods. Most business use a month as their accounting period. Financial statements are commonly prepared at the end of each accounting period. This activity is commonly referred to as "month end".

Last modified on 17 June 2009, at 01:28