What is a fiscal year?

How are fiscal years typically defined in field services organizations? 

1. Seasonal demand considerations
   
   Some field services, such as HVAC maintenance, landscaping, or outdoor repair, have peak seasons (e.g., summer or winter). The fiscal year may end after the busiest season to provide a clearer view of financial performance during the most active period. E.g. An HVAC company might use a fiscal year that ends on September 30, following the summer cooling season when revenue is highest.
   
   
2. Aligning with project cycles
   
   Many field services companies, such as construction or maintenance, have long-term projects that span months or even years. A fiscal year might be set to ensure projects are captured in a single reporting period, simplifying revenue recognition and expense tracking. E.g. A construction company might define its fiscal year to close at the end of a major project season, such as June 30, to account for projects completed in the spring.

How can I configure the fiscal year in Zoho FSM?

1. Navigate to Setup > General > Organization Details.
   
2. Under the Fiscal Year tab, click Manage Fiscal Year.
   
3. You can choose to set a Standard or Custom fiscal year.

Standard Fiscal Year

Custom Fiscal Year

1. Use Format for defining the structure of your fiscal year. You can either go for a Quarter Based or Year Based structure.
   Each value under Quarter Based is in the format P1-P2-P3, where P1, P2, and P3 represent the number of weeks in the first, second, and third period of the quarter.
   Each value under Year Based is in the format Q1-Q2-Q3-Q4, where Q1, Q2, Q3, and Q4 represent the number of periods in the quarter.
2. Specify the Start Date on which you want the fiscal year to begin.
   
3. For Display Fiscal Year Based on Q-YYYY. Choose Starting Year or Ending Year depending on whether you want to label the fiscal year based on the year from which the fiscal year starts or the year in which it ends.
   Using the Period display option, you can choose how the periods will be labelled. You can either choose Number by Year or Number by Quarter. Refer to the preview for how the periods will be labelled in either case.
4. Surplus week add-on option.
   When the year is divided into 52 weeks, only 364 days will be used. The omitted day from each year can be accumulated over six years and then added as an extra week in any quarter or period. To do so, click Add Surplus Week. Select a Period to which you want to add the surplus week.

Where will the fiscal year be put to use?