Accrued Revenue

Accrued revenue is the income of a  business that has been earned but not yet collected. In other words, the customer has not yet paid after the business has delivered goods, services, or a loan. The accrual method of accounting is used by many larger businesses in which costs and revenue get recorded when they occur, regardless of when the money comes through. Payment comes later than the delivery of goods or services in accrued revenue.

This method of accounting is more complex than the cash method, its alternative. An accounting software can be used by companies to master the intricacies of the accrual method and accurately track revenue, costs, and profitability. 

Accrued revenue falls into the 'asset' column of a company when accountants balance a business's book. The money it still counts as income since a customer owes the company money. Accounts receivable and Interest revenue are two types of accrued revenue. Accounts receivable is the amount of money a company is owed for goods or services delivered. An accounts receivable automation software is often used by businesses to optimize this method of payment. Interest revenue is the amount of interest on a loan owed to a company. 

Companies can understand profit margins, accurately forecast their profit and will be able to attract investors by monitoring, recording and analyzing accrued revenue.