When does the fiscal year end in the US — and what do you need to do?

In the US, the fiscal year ends on September 30 and begins again on October 1. But there’s far more to year-end accounting than simply remembering these dates.

For instance, what exactly is a fiscal year, and how is it different from the financial year? Why does it matter? And, come year-end, what does it mean for your business?

In this article, we’ll clarify the meanings of all the various terms, explain the significance of a fiscal year, and provide actionable insights to help you streamline your year-end processes. So let’s jump straight in.

What is a fiscal year?

A fiscal year is the 12-month period that your business uses for financial reporting and accounting purposes. Crucially, you can choose your own start and end dates based on how your business works.

For example:

• A retail business might end its fiscal year in January after the seasonal holiday rush.

• A school might follow an academic calendar, ending in June or July.

• Most other businesses might stick with the calendar year (January to December) to keep things simple.

There’s no one-size-fits-all. What matters is consistency — and that the Internal Revenue Service (IRS) knows what you’ve chosen.

Who else needs to know your fiscal year-end?

As well as the IRS, other stakeholders that need to be aware of your fiscal year-end include your investors, financial institutions, and internal management.

Why does fiscal year-end matter for small businesses?

Selecting an appropriate fiscal year-end is not just an accounting formality. Your fiscal year-end affects:

• When you file taxes

• How your financial reports are structured

• When you close your books

• How your investors or board interpret performance

• When you plan hiring, budgets, and product launches

In short, it’s the backbone of your business calendar. And getting it wrong (or just not knowing how it works) can create stress you don’t need.

How does the fiscal year-end affect tax filings?

Your chosen fiscal year-end determines your tax filing deadlines, and the period your tax return covers. If you are misaligned, this can lead to compliance issues.

When does the fiscal year end in the US?

In the US, the federal government's fiscal year begins on October 1 and ends on September 30 of the following year. For example, fiscal year 2025 started on October 1, 2024, and will conclude on September 30, 2025.

However, as mentioned, businesses have the flexibility to choose their fiscal year-end based on what aligns best with their operational cycles.

As a result, common fiscal year-end dates among many US businesses include:

• December 31: Aligns with the calendar year-end.

• March 31: Aligns with the end of the first quarter.

• June 30: Aligns with the end of the second quarter.

• September 30: Matches the federal government's fiscal year-end.

Choosing a fiscal year-end that aligns with your business operations can simplify financial reporting and tax preparation.

If you don’t formally choose a different fiscal year, the IRS will assume you're using the calendar year (ending December 31).

What happens if you change your fiscal year-end?

Changing your fiscal year-end requires IRS approval and may result in a short tax year. It's highly advisable to consult with a tax professional before attempting to make such changes.

Fiscal year vs financial year vs accounting Year

The terms fiscal year, financial year, and accounting year are often used interchangeably, but they can have distinct meanings — especially if you have employees in different countries, and/or you’re reporting in multiple jurisdictions.

Specifically:

• The fiscal year typically refers to the 12-month period your company uses for tax reporting and budgeting. In the US, this term is commonly used in governmental contexts.

• The financial year is often synonymous with fiscal year, but in some regions, it refers specifically to the period used for financial reporting to stakeholders.

• The accounting year is the period for which your company prepares its financial statements. This can be a fiscal year or a calendar year, depending on your company's accounting practices.

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What do you need to do at year-end?

To ensure a smooth transition, it’s useful to have an end of year checklist where you follow these steps:

1. Reconcile your accounts. Match all the transactions in your accounting records with your bank statements to identify any discrepancies.

2. Review your accounts receivable and payable. Ensure all your outstanding invoices are collected and that all your bills are paid.

3. Assess your inventory. Conduct a physical count and valuation of your inventory, adjusting your records as necessary.

4. Review your fixed assets. Update your records for asset purchases, disposals, and depreciation.

5. Check your payroll compliance. Verify that all your payroll obligations — including taxes and benefits — are accurately recorded and settled. If you use an automated payroll provider like Remote, you don’t need to worry about this.

6. Prepare your tax documents. Organize the necessary documents for tax filings, including income statements and expense reports.

7. Generate your financial statements. Prepare your income statements, balance sheets, and cash flow statements for internal review and external reporting.

8. Review regulatory compliance. Ensure you have adhered to any industry-specific accounting regulations and standards.

9. Analyse your budget. Compare your actual financial performance against your budget to inform future planning.

10. Consult with your financial advisors. Engage with your accountants or financial advisors to review your financial health, and plan for the upcoming year.

Implementing a checklist like this can streamline your year-end processes and set a solid foundation for the new fiscal year.

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How can Remote help?

Managing payroll is a key part of ensuring that your business meets its financial responsibilities. But ensuring compliance with payroll tax and reporting obligations can be daunting, especially for small businesses.

Remote Payroll removes this headache and simplifies your entire payroll process. In the US, we ensure all reporting is completed and filed accurately, on time, and in full compliance with all local, state, and federal tax laws — and we even remit the payments on your behalf.

Our platform is also fully integrated with all major accounting software tools, helping you to keep your records accurate and close your books with confidence. 

To learn more about how Remote can simplify your payroll management — and how it can align seamlessly with your accounting software — speak to one of our friendly experts today.

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