A fiscal year is any 12-month period a business uses for financial and tax reporting purposes. It may or may not align with the calendar year.
The fiscal year (or financial year) defines the annual period over which a business measures financial performance. While many businesses use the calendar year (January to December), others use different periods. In Australia, the standard fiscal year runs July to June. In the UK, the tax year runs April to April for individuals, though companies can choose their own year-end. The choice of fiscal year can have practical and tax implications: ending your year during a slow season makes year-end processes easier, while aligning with your industry's natural cycle can produce more meaningful comparisons. Once chosen, the fiscal year determines all annual reporting obligations including tax returns, financial statement preparation and regulatory filings. Changing your fiscal year typically requires permission from the tax authority. SortBooks aligns with your fiscal year setting in Xero, generating period-accurate reports and tracking compliance deadlines specific to your chosen year-end.
SortBooks automates the bookkeeping processes related to fiscal year by connecting to your Xero account and using AI to categorise transactions, reconcile bank feeds and generate accurate reports. Instead of manually managing fiscal year, SortBooks handles it automatically with 97%+ accuracy - saving you hours every week and ensuring your books are always up to date and compliant.
The financial year (or fiscal year) is the 12-month period your business uses for accounting and tax reporting purposes. It may or may not align with the calendar year.
A tax return is the formal document lodged with your tax authority reporting your income, deductions and tax payable for a specific period, usually annually.
In bookkeeping, compliance refers to meeting all legal and regulatory requirements for financial record keeping, tax reporting and lodgement obligations set by your tax authority.
Financial statements are formal reports that summarise your business's financial position and performance. The three core statements are the profit and loss, balance sheet and cash flow statement.
SortBooks handles all the complexity automatically. Just connect Xero and let AI manage your books.