Fiscal year
Learn what a fiscal year is, how it's named, and how balance dates work for New Zealand businesses.
Published Thursday 23 July 2026
Table of contents
Key takeaways
- A fiscal year is a 12-month accounting period used for financial and tax reporting. It's also called a financial year.
- Fiscal years are named after the year the period ends, so a year running 1 April 2023 to 31 March 2024 is FY24.
- In New Zealand, the standard balance date is 31 March, so most businesses run their accounting year from 1 April to 31 March.
- You can apply to Inland Revenue to change your balance date if a different date suits your business better.
What is a fiscal year?
A fiscal year is a 12-month accounting period that you use for financial and tax reporting. It's also called a financial year, and it doesn't have to line up with the calendar year.
A calendar year always runs from 1 January to 31 December. A fiscal year can start and end in any month, as long as it covers 12 months in total.
The dates you use are driven by your business activities, your revenue cycle, and your tax reporting requirements. That flexibility lets you match your reporting to the way your business actually earns and spends money.
How is a fiscal year named?
A fiscal year is named after the calendar year in which the period ends, not the year it starts. This keeps naming consistent even when a fiscal year spans two calendar years.
For example, a fiscal year that runs from 1 April 2023 to 31 March 2024 is known as FY24. The "FY" stands for fiscal year, and the number matches the year the period closes.
Fiscal year vs tax year vs financial year
These three terms sound similar and often overlap, so it helps to see how they relate. The quickest way to keep them straight is to treat the fiscal year as the umbrella term.
- Financial year: a direct synonym for fiscal year, used in the same way to describe your 12-month accounting period
- Fiscal year: any 12-month accounting period you use for financial and tax reporting
- Tax year: an example of a fiscal year, set by the tax authority for reporting and paying tax
The fiscal year in New Zealand
In New Zealand, the standard balance date is 31 March. So for most businesses, the accounting year runs from 1 April to 31 March.
Your balance date is the date your financial year ends and the point you report from. If a different date suits your business, you can apply to Inland Revenue to change your balance date. You can check the current guidance on Inland Revenue's balance dates page.
How to choose a fiscal year for your business
Choosing a fiscal year is about matching your reporting to how your business runs. Weigh up a few practical factors before you settle on a balance date.
- Business activities: pick an end date that falls in a quieter period so you have time for reporting
- Revenue cycle: align your year end with the natural close of your seasonal or trading cycle
- Tax requirements: check what your tax authority expects, including any tax deductions and whether a change needs approval
Keep your fiscal year on track with Xero
Xero brings your finances together in one place, so you can track income, expenses, and reporting across your whole fiscal year. Set your balance date once and keep your books ready for reporting all year round. Try Xero and get one month free.
FAQs on fiscal years
Here are answers to frequently asked questions about fiscal years.
Is a fiscal year always 12 months?
Yes, a fiscal year covers 12 months in total. A shorter or longer period can happen in a business's first year or when the balance date changes.
Can two businesses have different fiscal years?
Yes, businesses can use different balance dates to suit their own trading cycles. In New Zealand, though, most stick with the standard 31 March balance date.
What does FY stand for?
FY stands for fiscal year, the 12-month period you use for financial and tax reporting. The number after it, such as FY24, refers to the year the period ends.
Related terms
Learn more about fiscal years
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Disclaimer
This glossary is for small business owners. The definitions are written with their requirements in mind. More detailed definitions can be found in accounting textbooks or from an accounting professional. Xero does not provide accounting, tax, business or legal advice.