By Leanna Kelly There are many industries where companies provide goods or services, but aren’t immediately paid for them. From an accrual basis accounting standpoint, these represent accrued revenue for the company. Technically, they’re assets until they’re realized as revenue, recorded as such on the balance sheet. This revenue accrues for as long as the company provides good or services, up to the point they issue an invoice and get paid for them.
Recognizing future revenue as the company delivers goods and services helps to better-balance its books and paint a more transparent picture of its financial health. Here’s a look at what …read more
