What Is Accrued Revenue? Definition, Examples, and Journal Entries

Accrued revenue is revenue that has been earned but not yet billed or collected at the reporting date. It reflects timing differences between delivery of value and invoicing or cash receipt.

Executive summary

• Accrued revenue is recognized when performance obligations are satisfied.
• It differs from accounts receivable and deferred revenue in timing and documentation.
• Clear cutoff procedures and reconciliation controls reduce misstatements.

Next steps

• Document recognition criteria and cutoff rules by revenue stream.
• Align billing operations with Finance to minimize lag.
• Reconcile accruals to source systems each close.