Accrued Revenue

Accrued revenue is revenue that has been earned by the reporting date even though the customer has not yet been billed or cash has not yet been collected.

This is the revenue-side mirror of an accrued expense. The economic activity has already happened, so the revenue has to be recognized in the current period rather than delayed until invoicing.

Typical entry

1Dr Receivable
2  Cr Revenue

The receivable may be presented as accounts receivable or another earned-but-unbilled asset depending on the situation.

Common examples

• consulting work completed before the invoice is issued
• interest earned but not yet received
• rent earned before collection date
• milestone-based service delivery completed near period end

Accrued revenue vs nearby terms

• Deferred Revenue: cash received before the revenue is earned.
• Accrued revenue: revenue earned before the cash is received.
• Accrued Income: alternate wording often used for the same accounting idea.

Why it matters

If accrued revenue is omitted, revenue and assets are understated for the period. In service businesses and interest-bearing arrangements, that can distort both profit and working-capital analysis.