Like deferred revenue, Unbilled AR (accrued revenue) is an essential element and concept of revenue recognition for subscription businesses.
Unbilled AR is an Asset account on the balance sheet that represents amounts recognized as revenue for which invoices have not yet been sent. This can occur when you invoice in arrears or have any delay in billing relative to the revenue recognition trigger date. It is also common with professional services fees paid in advance for work to be performed.
|Finance for Entrepreneurs||On Boarding||Normalized Contracts|
|Cash Flow Forecasting||Bookings||Unbilled AR|
|SaaS Subscription Models||New Bookings||Deferred Revenue vs. Revenue Backlog|