The Importance of Accrued Revenue for Subscription Businesses
Subscription Flow
JANUARY 29, 2024
In the context of subscription models, accrued revenue is the money that a business has made but hasn’t yet received in cash. Accrued revenue is important for accurate financial reporting, as it ensures that revenue is recognized in the period in which it is earned, regardless of when the cash is received. However, there are various complexities of handling accrued revenue in subscription businesses.
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