2,317 Shopify stores already joined the waitlist! Early access
perks live now.
2,317 Shopify stores already joined the waitlist! Early access
perks live now.
Accrued revenue refers to income a business has earned but hasn’t received payment for yet. In other words, you’ve delivered the product or service, but the customer hasn’t paid, at least not yet. It’s recorded as revenue on your books even though the cash hasn’t come in.
Accrued revenue helps businesses keep accurate financial records by recognizing income as it’s earned, not just when payment is received. This is important for understanding true profitability, planning for cash flow, and reporting financial performance correctly, especially for subscription-based or service-driven businesses.
Yes, in accounting, accrued revenue is considered an asset because it represents money that will come in later. It sits on the balance sheet under accounts receivable until the payment is actually collected.
It’s the opposite. In accrued revenue, you’ve done the work and are waiting for payment. In deferred revenue, the customer has paid you in advance, but you haven’t delivered the product or service yet. Both play key roles in managing cash flow and revenue recognition in ecommerce and subscription businesses.
Imagine you run a subscription business and invoice a client for a 3-month service that starts today. You record one-third of the revenue each month, even if the full payment comes later. That’s accrued revenue in action.
If you run a subscription business, understanding accrued revenue helps you get a clear view of earned income, especially when customers are billed monthly but pay later. Make sure your financial tools reflect both accrued and deferred revenue accurately.
