Federal Fiscal Year (FY) is a unique period used by U.S. government for financial planning and budgeting purposes. Spanning a 12-month period, it signifies the time frame over which federal funds are planned, allocated, and expended. Unlike the traditional calendar year that begins in January, the federal fiscal year starts on October 1st and ends on September 30th of the following year.
Federal Fiscal Year is designated by the calendar year in which it ends. For instance, FY 2020 began on October 1, 2019, and ended on September 30, 2020. Understanding and applying Federal Fiscal Year is crucial for federal agencies, contractors, and other parties dealing with U.S. government as it aides in the alignment of financial and budgetary activities with the government’s timeline.
