The fiscal year is a standard accounting practice allows the accounting year to begin in any month. Fiscal years are numbered according to the year in which they end. For example, a fiscal year ending in February of 2018 is Fiscal 2018, even though most of the year takes place in 2017.

For further reading on small business financials, check out The Key Elements of the Financial Plan, as well as How to Read Your Business’s Balance Sheet, What Is an Income Statement? and How to Forecast Cash Flow.

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Bplans GlossaryBplans Glossary

At Bplans, it's our goal to make it easy for you to start and run your business. Our glossary of common business terms will help you learn about key small business and entrepreneurship topics, to help you plan, fund, and grow your business.