Fiscal Year vs Calendar Year

A fiscal year is a 12-month or 52- to 53-week period used for accounting purposes by governments, businesses, and other organizations. It's a customized year that's chosen to align with a company or an HOA's planning, budgeting, or revenue cycles.

Fiscal years can differ from the calendar year, which ends on December 31. A company can choose a fiscal year that starts on January 1, April 1, July 1, or October 1, and ends at the end of a quarter. For example, a fiscal year that starts on April 1, 2017 ends on March 31, 2018. A company can also choose a 52- or 53-week fiscal year that ends on the same day of the week each year.

Fiscal years are important for accurate accounting practices and help entities prepare for the upcoming year. They're used for:

• Financial reporting: HOAs use their fiscal year to prepare financial reports, which are often based on a different period than the calendar year.
• Tax filings: Federal tax filings are based on a HOA's fiscal year.

If your HOA operates on a fiscal period that differs than a traditional calendar year you can adjust it by going to Accounting>Settings and update the month of the year that your accounting period begins