An accounting period is a period of time that covers certain accounting functions, which can be either a calendar or fiscal year, but also a week, month, or quarter, etc.
Accounting periods are created for reporting and analyzing purposes, and the accrual method of accounting allows for consistent reporting.
The matching principle states that expenses should be reported in the accounting period in which the expense was incurred, and all revenue earned as a result of that expense be reported in the same accounting period.
