Can You Tell Me The Difference Between Revenue Recognition And Revenue Assurance?

Revenue Recognition is basically a way to determine the accounting period in which revenues and expenses are recognized. It is the basis for accrual accounting by using the matching principle.

According to accounting principles, revenues are recognized when they are realized or are earned. It does not matter when the cash is received.

On the other hand, Revenue assurance is a way to ensure the revenue. This is done by eliminating cost additions, leakages, etc. This method is used to ensure that the revenues due for serviced rendered are collected and frauds are managed at an acceptable level.