Accurate revenue recognition is crucial for SaaS companies, especially as many are increasingly adopting consumption-based pricing models, which have grown from 27% to over 60% in recent years. Accrued revenue, income earned but not yet received, is essential for financial reporting and decision-making, ensuring that revenue is recognized when earned rather than when payment is received. This is particularly important in complex SaaS pricing models that combine subscriptions with usage-based components, where services often precede billing cycles. The revenue recognition principle, matching principle, and going concern principle are key accounting standards that guide this process, demanding that revenue be recorded as services are delivered. Automation in billing can address the complexities arising from these models by reducing errors and providing real-time revenue recognition, thus supporting compliance with accounting standards and enhancing investor confidence. As SaaS companies continue to implement these pricing strategies, robust accrued revenue management becomes vital to accurately reflect financial health, support strategic planning, and meet the growing demands for sophisticated billing processes.