system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5 - Why do we have fiscal years, and what is the reason for their time period?
gpt
Calendar year doesn't always work best. Companies don't want to have to deal with end of the year reporting, etc. around the holidays, or their business is tied into the holiday season -- a retailer wants to end their year after the entire holiday season (gift buying, and returns/exchanges) has occurred. Other businesses might end their fiscal year whenever they pass their peak season, or in a slower part of the year.

Also, it may be as simple as when the business started -- if it was founded in August, then they keep running 1 year cycles that begin in August, ending their fiscal year in July.