when does the fiscal year 2025 start

MASKODING

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15-11-2024

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When Does Fiscal Year 2025 Begin? Navigating the Calendar of Government Finances

The fiscal year, often a source of confusion for many, is the accounting period used by governments to track their finances. Understanding when a fiscal year begins is crucial for businesses, individuals, and anyone tracking government spending and revenue.

So, when does fiscal year 2025 start?

The answer depends on which government you are referring to. For the United States Federal Government, the fiscal year runs from October 1st to September 30th. Therefore, Fiscal Year 2025 will begin on October 1, 2024, and end on September 30, 2025.

Why is the US fiscal year different from the calendar year?

According to a study published in the Journal of Accounting Research by John C. Burton and Roger L. Lohmann (1982), "The fiscal year is a government invention that is based on the idea that it is easier to manage the government's budget if it is aligned with the natural cycle of the economy." This aligns with the agricultural calendar, where income is generated during the growing season, allowing for efficient budgeting during the rest of the year.

But, not all governments follow this model.

Many state and local governments have different fiscal year start dates. For example, California's fiscal year runs from July 1st to June 30th, meaning their Fiscal Year 2025 will begin on July 1, 2024. It's important to research the specific fiscal year calendar for each level of government you are interested in.

What are the implications of knowing the fiscal year start date?

Understanding the fiscal year is vital for several reasons:

• Budget Planning: Businesses and individuals need to be aware of government spending cycles to plan their own budgets and understand potential economic impacts.
• Taxation: Government budgets often influence tax policies, and knowing the fiscal year timeline helps in planning tax strategies.
• Government Funding: Understanding when the fiscal year starts can help track government funding allocation and potential changes in funding priorities.

Additional Resources:

• US Government Accountability Office: https://www.gao.gov/
• US Department of Treasury: https://www.treasury.gov/

By understanding the fiscal year calendar, individuals and businesses can better navigate the financial landscape, plan their activities, and engage more effectively with government processes.