Accrued revenues and accounts receivable are basically the assets of the company. However, there are certain things that make them different.
Generally, accounts receivable are the outstanding invoices that the company issued to the customers, and the customers still not making payments to those invoices.
It is a difference between accrued revenues. Accrued revenues refer to the amount that the company had offered the goods or services to customers and the invoices still not recreate and the bill to the customers.
For example, the company sells five transactions to its customers. All of those five transactions, the goods are already delivered to customers. At the month-end, there are only three transactions that invoices been issued to customers, and the remaining two still not issue yet.
In this case, the three transactions that the accountant had issued invoices to the customers, an accountant needs to records these transactions as accounts receivable.
For example, if the amount of these three invoices amounted to USD3K, then the accounting records would be Debit account receivable USD 3K and then Credit Saled Revenues USD 3K. This is to ensure that the end of the month, sales revenue completely records.
For the other two transactions that accountant has not issued invoices, accountant still also need to recognize those two transactions as revenue. This is to comply with IAS 18.
In this case, assuming the amount of these two transactions are USD2K, then the accountant needs to recognize USD2K as revenues in the income statement, and then accrued revenue in the balance sheet under current asset categories. The entry would be debit accrued revenues and credit sales revenues.
In the following month, the account will need to issue these two invoices to customers. And, once the invoices are issued, accountants need to move these two transactions that record as accrued revenues into accounts receivable.
Accrued Revenues refer to the amounts that customers owe the company based on the services or goods that the company provided them while the invoices still not billed.
However, accounts receivable are the outstanding invoices that customers still not paid. Both accrued revenues and accounts receivable are the current assets of the company.