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
> Need help making sense of your books? Ketchup cleans up your QuickBooks in 3–7 business days — so your numbers actually make sense. Get your price →
Related Terms
A tangible asset is a physical item of value that your business owns and uses in its operations. Unlike intangible assets (like patents or trademarks), tangible assets have physical substance you can touch — equipment, vehicles, buildings, furniture, and inventory. They typically appear on the balan
A vendor credit is a reduction in what you owe a supplier, typically issued when you return merchandise, receive defective goods, or get an adjustment for overcharges. It's like a refund, but instead of getting cash back, the vendor reduces your account payable balance. Vendor credits can also be ap
Non-operating income is revenue generated from activities outside a business's main operations. This includes interest earned on bank accounts, investment gains, rental income from unused property, insurance settlements, and gains from asset sales. Non-operating income appears separately on the inco
Lower of Cost or Market (LCM) is an accounting principle requiring inventory to be valued at the lower of its original cost or its current market replacement cost. If inventory can't be sold for more than it cost (due to obsolescence, damage, or market conditions), it must be written down to reflect
Need these terms applied to your books?
Accounting Ketchup catches up your QuickBooks so the glossary becomes your reality. Flat rate.