diff --git a/erpnext/accounts/report/financial_statements.py b/erpnext/accounts/report/financial_statements.py
index 48d1cde4550..7e96b9e237b 100644
--- a/erpnext/accounts/report/financial_statements.py
+++ b/erpnext/accounts/report/financial_statements.py
@@ -50,9 +50,8 @@ def get_period_list(from_fiscal_year, to_fiscal_year, periodicity, accumulated_v
 		to_date = add_months(start_date, months_to_add)
 		start_date = to_date
 
-		if to_date == get_first_day(to_date):
-			# if to_date is the first day, get the last day of previous month
-			to_date = add_days(to_date, -1)
+		# Subtract one day from to_date, as it may be first day in next fiscal year or month
+		to_date = add_days(to_date, -1)
 
 		if to_date <= year_end_date:
 			# the normal case