Take control of end of fiscal year with Xero

Every year, you prepare end-of-year accounts and financial reports to file taxes with the IRS. But it’s also a great chance to look back on how your business performed and plan for the accounting year ahead.

Prepare for your fiscal year end

A fiscal year for a business can be any 12-month period that ends on the last day of a month. Many businesses use the calendar year for their fiscal year start and end, from January 1 to December 31. At the end of the fiscal year, businesses close their books and prepare financial statements.

Learn about tax years at the IRS website

Artisanal bakers at Volare prepare bread dough knowing their books are in order for end of fiscal year US.

Keep accurate financial records all year

Use accounting software to capture transactions straight from your bank account to stay organized.

Get clear on the expense you can claim

Not all expenses are deductible. Learn what eligible business tax deductions are, or seek advice if unsure.

Produce end of financial year statements

These include income statement, balance sheet, cash flow statement and statement of owner’s equity.

Review and plan for the year ahead

Year-end financial reports summarize your business performance, giving you insights to refine your strategy.

Xero can help at the end of fiscal year

Make your fiscal year end the start of something better. Xero helps you pull the numbers together, streamline year-end accounting, and prepare accurate financial statements. Xero gives you the tools to manage your finances before, during, and after fiscal year end.

Automated data capture and bank reconciliation

Connect your bank account to keep your books up to date throughout the fiscal year, so you’re ready to file taxes with confidence.

Customizable financial reporting

Generate accurate and customizable financial reports in just a few clicks, making fiscal year reporting fast and easy.

Online collaboration with accountants and tax advisors

Share financial data with your accountant or advisor to streamline year-end reviews and prepare accurate info for IRS tax requirements.

Learn how Xero can help your business

A chart of income and expenses displays in Xero’s online accounting software on a tablet.

What to keep in mind at fiscal year end

Filing business taxes is more than just submitting a return. It’s important to know which deadlines apply to you, what tax forms you’ll need, and what financial information to have ready. Getting organized early can make tax time less stressful and help you file with confidence.

Be aware of filing deadlines after fiscal year end

Your tax return is usually due on the 15th day of the third or fourth month after your fiscal year ends. For most, this is April 15.

Know which forms apply to your business

Tax forms vary by business type. Sole proprietors use Schedule C, while partnerships and corporations file separate business returns.

Review employee and contractor tax obligations

If you have employees or contractors, plan ahead for W-2 and 1099 deadlines. These are usually due to recipients and the IRS by January 31.

Explore IRS resources for small business tax filing

Hands typing on a laptop as they close out the end of the financial year and review deadlines and tax forms.

Get support from an accountant or bookkeeper

Nothing beats advice from an expert. Accountants, bookkeepers and tax professionals can help get you from the end of one fiscal year to the start of the next – dealing with all the tricky stuff in between. An accounting professional can help you:

Finalize financial statements

They can prepare or review income statements, balance sheets, and cash flow statements so they’re ready for tax reporting.

Calculate and claim depreciation expenses

An accountant can help ensure assets are depreciated correctly and allowable deductions are claimed under IRS rules.

Plan for taxes in the new fiscal year

Advisors can help with tax planning strategies that may reduce future tax liability or improve cash flow in the year ahead.

Find someone near you in our advisor directory

A business owner works happily online with her accountant on preparing her accounts for end of fiscal year, United States.

End of fiscal year jargon buster

Complicated jargon doesn’t help the stress of fiscal year end. Here are a few explanations to get you started.

Accounting period

An accounting period is any timeframe that’s used for reporting on your finances. They can be monthly, quarterly or yearly.

Accounting period full definition

Income tax

You pay income tax on your earnings, as an individual and a business. For a business, earnings are your profit.

Income tax full definition

Tax deduction

A tax deduction is a business expense that can potentially lower the amount of tax you need to pay.

Tax deduction full definition

Financial statements

Financial statements include your income statement, balance sheet, cash flow statement, and statement of owner’s equity.

Financial statement full definition

Depreciation

Depreciation is how businesses calculate the cost of wear and tear of physical assets, like machinery.

Depreciation full definition

Expense

An expense is payment made by a business. They are deducted from revenue to calculate profit.

Expense full definition

Gross and net profit

Your income statement will show gross profit and net profit (always smaller than gross).

Learn how they differ

See our accounting glossary for more jargon-busting

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FAQs on end of fiscal year

: Fiscal year end is the last day of a small business’s 12-month accounting period. At fiscal year end, a business closes its books, reviews income and expenses, prepares financial statements, and uses this information to file taxes.
Fiscal year end is the last day of a small business’s 12-month accounting period. At fiscal year end, a business closes its books, reviews income and expenses, prepares financial statements, and uses this information to file taxes.
: Not always. A calendar year runs from January 1 to December 31 and is one type of fiscal year. In the US, a fiscal year can be any 12-month accounting period that ends on the last day of a month. Many businesses use the calendar year as their fiscal year.
Not always. A calendar year runs from January 1 to December 31 and is one type of fiscal year. In the US, a fiscal year can be any 12-month accounting period that ends on the last day of a month. Many businesses use the calendar year as their fiscal year.
: US businesses can often set their own tax year, which means there’s not a single day where everyone files. However, businesses are typically required to file on the 15th day of the fourth month after their fiscal year ends. So if your business year was the calendar year, you’d close your books on December 31 and file on the 15th of April. That means businesses have 3.5 months to prepare their tax return.
Learn when to file from the IRS
US businesses can often set their own tax year, which means there’s not a single day where everyone files. However, businesses are typically required to file on the 15th day of the fourth month after their fiscal year ends. So if your business year was the calendar year, you’d close your books on December 31 and file on the 15th of April. That means businesses have 3.5 months to prepare their tax return.
Learn when to file from the IRS
: Your income tax return needs to show the federal government how much profit your business earned in the accounting year, plus any business expenses you can claim as deductions such as business office supplies and promotional materials.
Your income tax return needs to show the federal government how much profit your business earned in the accounting year, plus any business expenses you can claim as deductions such as business office supplies and promotional materials.
: Yes, you need to retain copies of your financial transactions, including receipts and invoices. These may be required in the case of an audit. You’re expected to keep records for at least three years but sometimes longer, so check with IRS. That’s another reason why digital records are handy. The documents are perfectly preserved and take up no space.
See how using Hubdoc can make this simple
Yes, you need to retain copies of your financial transactions, including receipts and invoices. These may be required in the case of an audit. You’re expected to keep records for at least three years but sometimes longer, so check with IRS. That’s another reason why digital records are handy. The documents are perfectly preserved and take up no space.
See how using Hubdoc can make this simple
: Good news. You don’t need to do a formal year end close or roll-up journal in Xero. But it’s important to follow a simple process to check the accounts are up-to-date before the end of the fiscal year.
See how to do a year end in Xero
Good news. You don’t need to do a formal year end close or roll-up journal in Xero. But it’s important to follow a simple process to check the accounts are up-to-date before the end of the fiscal year.
See how to do a year end in Xero
: Xero's 1099 report contains forms for 1099-NEC and 1099-MISC. The 1099-NEC form is for reporting payments you’ve made to non-employees such as freelancers and contractors. The 1099-MISC form is for reporting miscellaneous income such as rent or royalties.
Learn more about 1099 in Xero
Xero's 1099 report contains forms for 1099-NEC and 1099-MISC. The 1099-NEC form is for reporting payments you’ve made to non-employees such as freelancers and contractors. The 1099-MISC form is for reporting miscellaneous income such as rent or royalties.
Learn more about 1099 in Xero