The accrued income meaning can often be confusing but is actually quite simple. It refers to any revenue that has been earned but is yet to be received. Many companies prefer this method of accounting since it serves as an alternative to cash accounting. Given the accrued income definition, this system of accounting is apt for businesses or entities offering products or services on credit.
To help you understand the concept better, here is an accrued income example: A consulting company renders its services to you, and you promise to pay later. In the financial records of the consulting company, this amount you owe (i.e., the bill or invoice amount) will be recorded as accrued income.