Accrued Revenue
Accrued revenue is an accounting concept that refers to revenue earned but not yet received or recorded in the books, typically because the service has been provided or goods delivered but payment is pending. It is recognized under the accrual accounting method to match revenues with the periods in which they are earned, regardless of cash flow timing. This ensures financial statements accurately reflect a company's performance and obligations.
Developers should understand accrued revenue when working on financial software, accounting systems, or business intelligence tools to ensure accurate revenue recognition and compliance with accounting standards like GAAP or IFRS. It is crucial for building features such as invoicing modules, revenue reporting dashboards, or automated accrual calculations in applications for industries like SaaS, consulting, or manufacturing where services are billed periodically.