A fiscal year (FY) is an annual accounting period used to measure a company’s performance. It typically begins on the first day of a calendar year and ends on the last day of that same year. Every organization has its own fiscal year, which is usually identified with an FY followed by the number of the year in question For example, if the end of your fiscal year is December 31, 2021, you will refer to it as FY 2021. Fiscal years are beneficial for businesses because they can provide an outline for when certain financial activities must occur, such as filing taxes or preparing reports. This can help businesses plan expenses and manage cash flow more efficiently.