Fiscal Years

A fiscal year is a standard set of periods used to prepare annual financial statements for reporting and tax purposes.

Fiscal years:

• Usually represent twelve monthly periods, but this varies by business and country.

• Can also be referred to as a financial year or a budget year.

When setting up fiscal years, you need to:

• Define the start date and end date for each of your fiscal years starting from the earliest date placed in service through at least one fiscal year beyond the current fiscal year.

• Define at least one calendar for each fiscal year to break the fiscal year into multiple report periods, such as months.

Note: Depreciation fails if the current fiscal year is the last fiscal year you set up.

Multiple Fiscal Years

You can set up multiple fiscal years and assign different fiscal years to your different corporate books to meet the various reporting and tax requirements.

Tax Books

A corporate book and all its associated tax books can use the same fiscal year or a different fiscal year. In other words, the calendar for a tax book can use the same fiscal year or a different fiscal year as the calendar for its associated corporate book.