What is an accounting period?

An accounting period is a set time frame used to record and report financial transactions.

It is a unit of time that defines the length of time that financial data is collected and aggregated into financial statements, such as the balance sheet, income statement, and cash flow statement.

The length of an accounting period is determined by the company or organization, but is typically a calendar year, a fiscal year, or a quarter.

At the end of each accounting period, the financial information is used to calculate the company's financial results and to prepare financial statements that summarize its financial position and performance.