What does fiscal year mean and how is it different from a calendar year?

[charlie]

I often hear companies talk about their fiscal year instead of the normal year. What exactly is a fiscal year, and why do businesses use it? How is it different from a calendar year?

 

[robertwilliam]

A fiscal year is a period of 12 months that businesses or governments use for accounting and budgeting purposes. It may not necessarily begin on January 1; it could run from any month (e.g., April to March in India). In contrast, a calendar year is always January 1 to December 31.