Fiscal Years and Quarters: When Q1 Starts Depends on Who You Ask
October 21, 2026
A calendar year runs from January 1 to December 31, but organizations are free to choose a different 12-month period for budgeting, reporting, and taxes. This period is called a fiscal year. Many choose to end it after their busiest season, so that the books are easier to close. Governments often pick dates tied to legislative cycles, and companies sometimes align with their industry.
Fiscal years are named for the calendar year in which they end (most commonly) or begin, which causes confusion. The US federal fiscal year 2027 runs from October 1, 2026 to September 30, 2027.
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The United States federal government uses October 1 to September 30. India, Japan, Canada's federal government, and Hong Kong use April 1 to March 31. Australia, Pakistan, and Egypt use July 1 to June 30. The United Kingdom's personal tax year runs from April 6 to April 5, while its government's fiscal year runs April 1 to March 31. Many US companies use the calendar year, but retailers often end the fiscal year in late January after the holiday season, and technology companies such as Microsoft end on June 30 and Apple at the end of September.
| Region or organization | Fiscal year | Q1 covers |
|---|---|---|
| US federal government | Oct 1 to Sep 30 | Oct, Nov, Dec |
| India, Japan | Apr 1 to Mar 31 | Apr, May, Jun |
| Australia | Jul 1 to Jun 30 | Jul, Aug, Sep |
| Calendar year (many companies) | Jan 1 to Dec 31 | Jan, Feb, Mar |
| Retailers (many) | Feb 1 to Jan 31 | Feb, Mar, Apr |
Naming Conventions
There are two main conventions. FY2027 may mean the year ending in 2027 (most US government and many companies) or the year beginning in 2027 (used by some). The US federal FY2027 begins in October 2026. Always check the definition, especially in contracts and reports. Fiscal quarters are labeled Q1 to Q4, with Q1 the first quarter of the fiscal year, so 'Q1 2027' for the federal government covers October to December 2026.
When combining data from different organizations, convert everything to calendar months or dates to avoid mismatches.
Converting Between Fiscal and Calendar Dates
To find the fiscal quarter of a date, count from the fiscal start month. For a fiscal year starting October 1, the quarter of March 15 is the one beginning in January: months 4 to 6 after October are Jan to Mar, so Q2. The formula: fiscal month = ((calendar month − start month) mod 12) + 1, and quarter = ceiling(fiscal month ÷ 3). For March with start month 10: (3 − 10) mod 12 = 5, fiscal month = 6, quarter = 2.
In spreadsheets, use EDATE to shift the date by the number of months difference and then apply YEAR() or ROUNDUP(MONTH()/3,0).
Why It Matters
Year-over-year comparisons require consistent periods. A company with a January 31 fiscal year-end reports its holiday season in Q4, while a calendar-year company splits the season across two years. Investors comparing firms need to align periods. Tax deadlines follow the tax year, which may differ from a business's fiscal year. Budget cycles drive purchasing timelines: government agencies often rush to spend funds before the end of the fiscal year.
Practical Advice
Document your organization's fiscal calendar and make it available in dashboards. Use the 4-4-5 or 52/53-week calendar if your business needs equal-length periods, as many retailers do; these are fixed week patterns that end on the same weekday, with a 53rd week added in some years. When in doubt, include the exact start and end dates in any report.
Frequently Asked Questions
When does the US federal fiscal year start?
October 1, ending September 30 of the following year.
What is Q1 in a fiscal year starting in April?
April, May, and June.
What does FY2027 mean?
Usually the fiscal year ending in 2027, but check the definition because some organizations name it for the year it begins.
Why do companies use non-calendar fiscal years?
To end the year after their busy season, which makes closing the books easier.
What is a 52/53-week fiscal year?
A calendar made of full weeks that ends on the same weekday each year, with a 53rd week added periodically.