The last day of a company’s accounting year—used to close the books, prepare financial reports, and file taxes. Most U.S. businesses use December 31 as their year-end.
What is Year-End (Fiscal Year-End)?
Year-End, also known as the Fiscal Year-End, marks the final day of a company’s accounting cycle. It’s the point when financial books are closed for the year, reports are finalized, and tax filings are prepared. For non-U.S. residents managing U.S. companies, understanding your company’s year-end is essential for meeting IRS deadlines, organizing your accounting, and staying compliant with both federal and state obligations.
Most U.S. businesses—especially those owned by non-residents or small startups—default to a calendar year fiscal year, meaning the year-end is December 31. In this case, the company’s tax return and annual financial reporting are based on activity from January 1 through December 31.
However, companies can choose a different fiscal year-end if it better aligns with their business cycle. For example, a seasonal business might choose a fiscal year that ends after its busiest period (e.g., June 30 or September 30). To do this, the company must make a formal election with the IRS (usually by filing Form 1128) and meet specific eligibility criteria.
At year-end, the company’s accounting system is reviewed to:
- Close the books for the fiscal period
- Finalize the profit & loss statement, balance sheet, and cash flow statement
- Reconcile accounts (bank accounts, loans, credits)
- Prepare documents for the CPA or tax preparer
- File federal and state tax returns
For U.S. corporations, Form 1120 must be filed by the 15th day of the fourth month following the fiscal year-end (April 15 for calendar-year companies). For LLCs treated as partnerships, Form 1065 is due March 15. Missing deadlines may result in penalties—even if the business had no activity or income.
For international founders, it’s especially important to know your year-end because:
- Your CPA will request financials based on it
- Your compliance obligations (tax filings, franchise tax reports, etc.) are tied to it
- Any potential tax planning (e.g., end-of-year spending or bonuses) must happen before the year closes
- It affects when you receive K-1s, 1099s, and other tax documents
In summary, your fiscal year-end is the anchor point of your business’s financial calendar. For non-U.S. residents running U.S. companies, keeping track of your year-end—and preparing for it early—ensures you stay compliant, avoid penalties, and maintain clean, investor-ready books.
