What is a financial year?
- By Book Keeping Pros
- Sources checked 15 Oct 2026
Definition
A financial year is the 12-month period a business uses for its accounts and reports. In Australia the financial year runs from 1 July to 30 June, and it is usually named by the two calendar years it spans, such as the 2026-27 financial year.
Year-end bookkeeping happens around the last day of the financial year: reconciling every account, reviewing unpaid invoices and bills, and producing the profit and loss statement for the year and the balance sheet at the last day of the year.
Monthly and quarterly reports usually follow the same year, so the first quarter of an Australian financial year is July to September.
In Australia
business.gov.au defines the financial year as a 12-month period used for tax and accounting purposes, and says that in Australia it runs from 1 July to 30 June.
Its guide to managing cash flow calls the end of the financial year a good time to review your finances and results against the goals you set at the start of the year, and to set new goals and priorities for the next one.
Related terms
Sources
- Key financial terms
business.gov.au, Australian Government. Current at 15 October 2026, released 9 July 2024. Checked 15 October 2026.
© Commonwealth of Australia 2020, licensed under CC BY 3.0 AU. Licence: CC BY 3.0 AU.
- Guide to managing cash flow
business.gov.au, Australian Government. Current at 15 October 2026, released 22 December 2025. Checked 15 October 2026.
© Commonwealth of Australia 2020, licensed under CC BY 3.0 AU. Licence: CC BY 3.0 AU.