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
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