2 min read
Definition
Accrued income is revenue that has been earned by providing goods or services but not yet invoiced or received at the balance-sheet date. Under the accruals basis, it's recognised as income and shown as a current asset.
In plain terms
It's work you've done and will bill for, counted as income now. It boosts profit before any cash comes in — another reason profit and cash differ.
Why it matters for your company
Accrued income inflates profit ahead of cash, so watch it when judging your real position. See profit vs cash flow.
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