Deferred Revenue

ScaleXP automates revenue recognition saving you and your team up to 2 days per month.

Automate deferred and accrued income recognition

ScaleXP uses a series of sophisticated natural language processing algorithms to read and process the text on invoices. 

These algorithms recognise multi-month invoices and then automatically spread revenue over the relevant time period.  All common words are read and processed including ‘annual’, ‘year’, ‘month’, ‘quarter’ as well as specific dates. 

This functionality eliminates the need to track deferred or accrued revenue in spreadsheets, saving hours of tedious, manual calculations each month. It streamlines reporting and ensures accurate revenue recognition every month.

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Streamline revenue recognition for accuracy

ScaleXP works seamlessly with your accounting system. The system extracts the text from your invoices, allocating revenue by month and day.   All calculations are fully compliant with IFRS, GAAP, including IFRS 15 and ASC 606.

Automating deferred and accrued income recognition creates more accurate financials, with revenue allocated correctly down to the day, without the need to maintain and update complex and time consuming spreadsheets. All details are fully auditable, easy to download, share or save.

ScaleXP IFRS, GAAP, IFRS 15, ASC 606

Save time & close faster

With our powerful business analysis platform, your work is streamlined, removing the need to track invoices and even invoice line items 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), as well as unit economics.

Read more about accrued income -> 


Be prepared for growth

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 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. 

ScaleXP saves up to 2 days per month by fully automating revenue recognition.   

Read our case study here ->

Benefits of automating with ScaleXP


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

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Streamline process

Streamline your accounting process and close the month faster.

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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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Create a real time view

Gain the ability to provide a real time view of revenue, in 1 click, whenever you need.

ScaleXP accounting API, integrations

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

ScaleXP seamlessly combines data from accounting platforms like Xero, QuickBooks, Sage and many more.

See the full list of integrations here ->

International currencies in ScaleXP

Can I calculate deferred income with other currencies?

The system works across currencies and countries.

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What if I issue a credit note?

The ScaleXP system will recognise and spread revenue from invoices and credit notes.  It automatically detects modifications to the invoices and adjusts the allocation of revenue when required.

Close faster and improve revenue recognition accuracy.

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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 (SMBs) could save thousands per year by using automated tools. 


Accurate revenue recognition for accrued and deferred income is essential for performance analysis and forecasting, but many organisations still rely on spreadsheets and other inefficient manual processes for deferred and accrued revenue recognition. ScaleXP offers a cost effective alternative.