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Accounting
Deferral
Delaying the recognition of revenue or expense until a later accounting period.
Deferrals are the opposite of accruals. They keep the books honest when cash comes in before the work is done or when you pay for something before you use it (prepaid rent, insurance, etc.).
It's putting the payment you already received in a "to be earned" box until you actually deliver the service.
Real world: A customer pays £1,200 for a yearly subscription in January. The company records it as deferred revenue (a liability) and then recognizes £100 of revenue each month as the service is provided.
💡 Deferrals stop you from counting money as profit before you’ve actually earned it.