Deferred revenue

ScaleXP automates both deferred income and accrued revenue recognition.

How does Deferred Revenue work in ScaleXP?

This is done by reading the details on each invoice line description.

The system recognises multi-month invoices and then automatically spreads revenue over the relevant time period.

The system will recognise words which denote time such as ‘annual’, ‘year’, ‘month’, ‘quarter’ as well as specific dates. The functionality is extensive and designed to eliminate the need to track deferred or accrued revenue in spreadsheets, saving hours of tedious, manual calculations each month.

ScaleXP invoice line description

How does automated deferred income streamline accounting?

ScaleXP works seamlessly with your accounting system. It is fully compliant with IFRS, GAAP, including IFRS 15 and ASC 606.

It creates more accurate financials, with revenue allocated correctly down to the day, without the need to complex and time consuming spreadsheets. All details are fully auditable, easy to download, share or save.

ScaleXP IFRS, GAAP, IFRS 15, ASC 606

What are the benefits of automated deferred income and accrued revenue?

With our powerful business analysis platform, your work is streamlined, removing the need to track each invoice in spreadsheets.

Invoices are imported into the system automatically and revenue is spread over the relevant time period, providing a real-time, highly accurate and detailed view of revenue.

From this point, critical business metrics can be derived in a single click
MRR (monthly recurring revenue), ARR (annual recurring revenue), CAC (cost of customer acquisition), LTV (customer lifetime value).

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Interactive charts

Display deferred income on our interactive charts and presentations.

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Impress your boss

Share an accurate real time view of revenue with the boss, the sales team or even investors.

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Customer behaviour

Understand customer behaviour.

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View secured revenue

Even view revenue which has already been secured but not yet recognised (which is particularly handy when preparing a sales forecast)

The benefits of automating deferred revenue with ScaleXP

As your company grows, the complexity of billing arrangements can quickly escalate with different terms by client or contract, different billing periods for hardware, software or specific services.

Calculating deferred income manually using the traditional spreadsheets is prone to error and time consuming. It is certainly not scalable.

Eliminate the time wasted on exporting data into spreadsheets, manually calculating deferred revenue – only to have to do it all over again next month. These tedious and laborious tasks mean that you’re spending less time on, well, everything else on your to do list 🙂

Benefits of automating with ScaleXP


Save time and improve accuracy with our automated deferred income and accrued revenue calculations.

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Streamlined process

Streamline your accounting process.

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Improve transparency

Improve transparency, traceability. Ensure a clear audit trail.

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Accurate reports

Consistently deliver deferred revenue reports that are accurate.

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Real time view

Gain the ability to provide a real time view of revenue, whenever you are asked.

ScaleXP accounting API, integrations

Can I automate deferred revenue with Xero, QuickBooks or Sage?

Our platform brings together and combines data from the following accounting systems: Xero, Quickbook and Sage Cloud.

International currencies in ScaleXP

Can I calculate deferred income with other currencies?

The system works across currencies and countries.

ScaleXP invoice details

What if I issue a credit note?

The system import all invoice data, including modifications. It can allow revenue to be spread from credit notes, when required.

And as if this was not enough, the system provides an area for you to designate the specific dates for an invoice, should extenuating circumstances ever arise.

To start automating deferred revenue, improve revenue recognition accuracy

Book a demo and begin your ScaleXP journey.

Deferred revenue FAQs

Deferred revenue or deferred income, which can also be referred to as unearned revenue, is revenue which has been invoiced but not yet ‘earned’. It is an advanced payment for services to be delivered in the future.

Deferred revenue typically occurs when a company issues an invoice, for services which will be delivered over several months, quarters or years. As a simple example, if you buy a gift voucher and pay today, the company will recognise deferred revenue until that voucher is redeemed. 

Accrued revenue is revenue which has been earned but not yet invoiced. It occurs when invoices are sent at the end of the quarter for services which they have already delivered.

For many small businesses and start-ups, revenue reporting rules may seem daunting. Fortunately, technological advances have streamlined revenue reporting by automating manual processes and enhancing financial visibility, allowing you to get the best view of when revenue should be recognised and when the cash will arrive.


It’s time-consuming and costly to manually calculate and allocate revenue over annual or even quarterly contracts.  Research suggests UK Small and Medium Businesses (SMB) could save thousands per year in switching to digital.


Accurate revenue recognition for accrued and deferred income is essential for performance analysis and forecasting via monthly management accounts. But many organisations still rely on spreadsheets and other inefficient manual processes for deferred and accrued revenue recognition.