A fiscal period is a specific time frame used by businesses and organizations to track financial performance and prepare financial statements. This period can vary in length, typically lasting a quarter (three months) or a year. Companies use fiscal periods to assess their income, expenses, and overall financial health, allowing for better planning and decision-making. At the end of each fiscal period, organizations conduct a fiscal year-end closing process, which includes reviewing accounts and preparing reports like the income statement and balance sheet. These reports help stakeholders, including investors and management, understand the company's financial position and performance over that time frame.