Financial Year (FY) is a 12-month period used by an organization for accounting, financial reporting, budgeting, taxation, payroll-related calculations, and record keeping. In India, the financial year generally runs from 1 April to 31 March of the following calendar year. For example, FY 2026–27 runs from 1 April 2026 to 31 March 2027.
In HRMS and payroll, the Financial Year is used to organize employee compensation, salary records, tax-related information, payroll reports, benefits, deductions, reimbursements, and other financial HR data within the appropriate reporting period. HR systems can maintain financial-year-wise records to support payroll processing and employee reporting.
Financial Year management helps HR and payroll teams maintain accurate year-wise records, prepare reports, track employee earnings and deductions, support payroll reconciliation, and manage applicable tax-related processes. It also helps employees access or receive relevant financial and payroll documents for the appropriate financial period.
For CLMS and contract workforce management, Financial Year records can be used to organize contractor and worker payroll-related information, wage records, deductions, billing data, attendance-based inputs, and compliance-related reports by financial period. This supports workforce reporting, contractor reconciliation, and year-wise record management.
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