October 9, 2024
Accrued Revenue in SaaS: Definition & Examples
In accounting, accrued revenue refers to income earned but not yet received in cash. This concept is particularly important for businesses that operate on a subscription model, like many Software-as-a-Service (SaaS) companies. As we dive deeper into this topic, we'll explore how accrued revenue works and why businesses need to keep track of these earnings. This will not only help you maintain a healthy cash flow but also sharpen your company’s financial strategies, ensuring that you aren't caught off guard. Join us as we unravel the complexities of accrued revenue and its impact on business operations.