Investor Connect Podcast

Accrued Revenue

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Accrued revenue is revenue that has been earned but has not yet been paid for.

This could be project work that is billed when completed.

The unpaid balance for the work done is considered accrued revenue.

This applies to project work as well as loans in which the interest income is considered accrued revenue.

Revenue should be recognized in the accounting period in which it occurred.

Accrued revenue is considered an asset on the balance sheet.

The opposite of accrued revenue is deferred revenue in which you receive payment in advance of providing the service. 

It’s considered unearned revenue and is posted as a liability on the balance sheet.

Work with your bookkeeper to capture this information into your accounting system.


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Direct download: Accrued_Revenue.mp3
Category:general -- posted at: 5:00am CDT