Accounting Period
An accounting period is a specific span of time covered by a set of financial statements — typically a month, quarter, or fiscal year. It's the timeframe you're reporting on.
Accounting Period Definition
An accounting period is the specific span of time covered by a set of financial statements. It defines the window you're looking at when you run a P&L, balance sheet, or cash flow report.
Common Accounting Periods
Fiscal Year vs. Calendar Year
A calendar year runs January 1 – December 31. A fiscal year can start on any date (e.g., April 1 – March 31). Most small businesses use the calendar year. C-corps and some industries choose fiscal years that align with their business cycle.
Why Accounting Periods Matter
Consistency in accounting periods makes your financials comparable. Comparing January 2026 to January 2025 is meaningful. Comparing a 5-week period to a 4-week period is not.
How Accounting Periods Work in QuickBooks
QuickBooks lets you set your fiscal year start month in Settings → Company Settings → Advanced. All reports default to this fiscal year, and you can close periods to prevent changes to historical data.
FAQ
Q: Can I change my accounting period?
A: You can change your fiscal year, but it requires IRS approval (Form 1128) and may trigger a short tax year. Talk to your CPA before changing.
Related Terms
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Related Terms
A cost incurred in the ordinary course of running a business. Deductible business expenses reduce taxable income.
Petty cash is a small amount of physical cash kept on hand for minor, everyday business expenses. Instead of writing a check or using a credit card for a $12 box of pens or a $7 parking fee, you pay from petty cash. It's tracked through a petty cash fund with receipts documenting every disbursement.
Cost of goods sold (COGS) is the direct cost of producing or purchasing the products your business sells. It includes materials, labor, and manufacturing overhead — but not rent, marketing, or admin costs.
A check register is a detailed log of all transactions in a bank account — every deposit, withdrawal, check, transfer, and fee, listed in chronological order. It's your running record of account activity that helps you track your balance and reconcile with your bank statement. In modern accounting,
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