A business fiscal year is a 12-month period used for accounting purposes. It does not necessarily follow the calendar year, as businesses may opt to begin their fiscal year at any point in the year and end it twelve months later. The business fiscal year is used to report revenue, expenses, profits and losses. It serves as a way to measure the financial performance of a business over the course of a defined period of time and allows for comparison with prior years. Understanding a business’s fiscal year is key to making informed decisions about the future.