A fiscal year is a one-year period that companies and governments use for financial reporting and budgeting. It may not align with the calendar year, which runs from January 1 to December 31. Instead, a fiscal year can start and end in any month, such as from April 1 to March 31. This flexibility allows organizations to choose a period that best fits their operational cycles. Organizations use fiscal years to track income, expenses, and overall financial performance. For example, the U.S. federal government operates on a fiscal year that begins on October 1 and ends on September 30. This system helps in planning and evaluating financial strategies effectively.