Accrued Revenue
Definition
Accrued revenue is income the business has earned but has not yet invoiced or received. At period-end, the bookkeeper records it so the books reflect work already completed.
Example
A consultant finishes a project on March 30 but will send the invoice in April. The revenue is accrued into March because the work was completed in March.
Why It Matters
Without recording accrued revenue, the period's income looks too low and the receivable is missing.