Dictionary / Accrued Income
What does Accrued Income mean in accounting?
Quick definition
Accrual & timingAsset arising from income earned, but not received, at a given date; also known as accrued revenue. This term guides how bookkeepers record, classify, and explain related transactions in routine financial reporting.
Read more below
Examples
A window job finished before you invoice
Your commercial window crew finishes a three-building wash at an office complex on October 29. You will not send the $2,850 invoice until November 4. At the October 31 close, debit accrued income $2,850 and credit window-washing income $2,850 so October sales and the balance sheet show work you already earned. When the November invoice posts in QuickBooks Online or Xero, reverse that accrual so $2,850 does not hit twice. Waiting for that client's check is cash basis timing, not accrued income.
An invoice already sent is not this
Your pest-control route finished a quarterly spray at a veterinary clinic on May 22 and emailed the $640 invoice that same afternoon. At the May 31 close you do not need an accrued-income entry. The $640 is already accounts receivable and May sales already include it. If you also debit accrued income and credit sales, May revenue doubles. Accrued income is only for work you have earned and have not billed yet.
Why it matters
Accrued income is the asset for money you have already earned but have not received, the same idea as accrued revenue. You will post it most month-ends if you finish work and invoice later; you will barely see it if every job is billed the day it wraps. It belongs in the accounting period you did the work, not the week the invoice or deposit lands. Skip the close entry and that month's sales and assets are short; leave it sitting after you invoice and you count the same sale twice, while a deposit collected before you earn the work is deferred income and an invoice already sent is accounts receivable.
Keep learning
Start with the bookkeeping basics, then compare software when you are ready to pick a tool.
Getting startedBookkeeping basics for small-business ownersWhat bookkeeping is, the records you need, double-entry in plain English, and a monthly rhythm that fits a 1–50 person shop.Updated October 4, 2026
RolesWhat does a bookkeeper do?A bookkeeper records bills, invoices, and bank activity so your books stay current. See the weekly work, the month-end close, and what they do not do.Updated August 18, 2026
Monthly closeMonthly bookkeeping: what to close each monthMonth-end is the job: reconcile banks and cards, age bills and invoices, check payroll, then read the reports. A close checklist for small-business owners.Updated August 18, 2026
Expense ManagementThe 10 Best Expense Management Software for Small BusinessWe ranked the 10 best expense management tools for small business, scored on features, ease of use, and value, with honest tradeoffs for each.Updated August 8, 2026Frequently asked questions
What is Accrued Income in bookkeeping?
Asset arising from income earned, but not received, at a given date; also known as accrued revenue.
When should I use Accrued Income?
Use Accrued Income when the transaction facts match its definition and you need the ledger and financial statements to reflect the correct account and period.
What is a common mistake with Accrued Income?
Accrued Income is used for accrued income entries, while Abandonment covers a related but distinct bookkeeping purpose. Review both terms before posting unusual transactions. A common mistake is applying it by label only instead of checking the underlying transaction details.