Accrued Revenue represents revenue earned from the provision of goods or services that has not yet been invoiced or physically received by the reporting period's close. It occurs because revenue is recognized when earned in accordance with accrual accounting principles, even if the cash payment has not been received. For instance, a consultancy firm performing monthly services for a client may earn its revenue through completed work, but the invoice to collect payment may only be issued at the end of the billing cycle. Therefore, accrued revenue is recorded as an asset in the financial records of the company, signifying amounts due from clients.

This concept is essential for accurately presenting a company's financial position and performance since it aligns revenues with the periods during which they are earned. As time progresses and the invoicing occurs, accrued revenue typically transitions into accounts receivable. Managing accrued revenue effectively ensures that financial statements such as the balance sheet and income statement reflect complete and true information regarding business operations. Accrued revenue is commonly reviewed during month-end close processes and is listed among tasks in a month-end checklist.