Fiscal Year-End

When we’re out and about in our everyday lives, we typically operate with the understanding that a year begins on January 1 and ends on December 31.

But fiscal years, which are how organizations count twelve-month periods, might or might not coincide with the calendar year we all know and love. For example, We Make Stuff Construction Co. might decide that it makes more sense to start their fiscal year on November 1 and end it on October 31 (spooky) because they do more work in the summer months and want that revenue to show up on their year-end statements.

Whatever the company’s reasons are, and whenever they decide to start and stop their fiscal year, the last day of that year is what we call the fiscal year-end. Its friends and neighbors call it FYE. At FYE, companies release their financial statements, announce any dividends, and get ready to start the next business day like it’s January 1. Because for them, FYE is just like NYE, and if business is going well, they might even have themselves a little FYE party.