financial year

Meaning

A financial year (also known as a fiscal year) is a 12-month period used by governments and businesses for accounting, budgeting, and financial reporting. It does not necessarily align with the calendar year (January 1 to December 31). For example, many companies start their financial year on April 1st or July 1st.

Examples

• Our company's financial year runs from April 1st to March 31st of the following year.

  Our company's financial year runs from April 1st to March 31st of the following year.

• We managed to double our profit margins during the last financial year.

  We managed to double our profit margins during the last financial year.

• The budget for the upcoming financial year needs to be approved by the board next week.

  The budget for the upcoming financial year needs to be approved by the board next week.

• We are currently preparing our annual report for the 2025 financial year.

  We are currently preparing our annual report for the 2025 financial year.

• Any unused department budget will not carry over into the next financial year.

  Any unused department budget will not carry over into the next financial year.

Common Mistakes

• ✗ We need to submit our taxes before the end of the economic year.

  ✓ We need to submit our taxes before the end of the financial year.

  'Financial year' (or 'fiscal year') is the standard term; 'economic year' is not used to describe a company's accounting cycle.

• ✗ The financial year of our company starts in January 1st.

  ✓ Our company's financial year starts on January 1st.

  Use the preposition 'on' with specific dates, and the possessive form 'our company's financial year' is much more natural than 'the financial year of our company'.

Related Expressions

Practice

• Our company's ___ doesn't follow the calendar; it actually begins in October.

  💡 The 12-month period used for accounting and budgeting.

  Show answer

  financial year

• The sales team exceeded their annual targets for the current ___.

  💡 The business year used for calculating taxes and profits.

  Show answer

  financial year