What is a fiscal year?
This basic question will allow the interviewer to gauge your level of experience and knowledge in payroll. It will also show the interviewer your ability to explain an accounting-related term in a way that anyone can understand. People can clearly explain concepts they genuinely understand, after all! Your response should be straightforward and to the point.
"A fiscal year is a 12-month cycle established by each organization for accounting and financial purposes. For instance, an organization may choose to begin their fiscal year on June 1st and end the fiscal year on the last day of May of the following calendar year."
"While completing my accounting degree, I learned that a fiscal year is the accounting period for a company. Sometimes this is the calendar year. Other times, companies operate on a different cycle such as a September to August fiscal year."
A fiscal year is a 12-month period that companies and governments use for financial reporting and budgeting. A fiscal year is most commonly used for accounting purposes to prepare financial statements. Laws in most jurisdictions require companies to prepare and publish financial reports on an annual basis. Typically, the leaders of the company set revenue and expense goals for the year and then break those down to quarterly and monthly to track ongoing results.
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Anonymous Answer
A fiscal year is a company's 12 month accounting period. Sometimes it is a calendar year and other times it is not. A company's fiscal year may begin on May 1st and end on the last day April of the following year.
Stephanie's Feedback
Great--you clearly show your content knowledge in this area!
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