What is unbilled revenue.

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Accepted Answer

Unbilled revenue is revenue that has been earned but not yet invoiced to the customer.

Unbilled revenue is also known as accrued revenue or deferred revenue.
It is common in industries where services are provided over a period of time, such as consulting or software development.
Unbilled revenue is recorded as a liability on the balance sheet until an invoice is issued.
Once an invoice is issued, the unbilled revenue is recognized as revenue on the income statement.
For example, a consulting firm may provide services to a client over a three-month period. At the end of each month, the firm has earned revenue but has not yet invoiced the client. This revenue is considered unbilled revenue.

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