Deferral revenue, also known as unearned revenue, refers to advance payments a company receives for products or services that are to be delivered or performed in the future. Accural revenue refer to expenses that are recognized on the books before they have actually been paid. Responsible accounting procedures provide a framework for management to create financial development goals to improve the vitality of a business. Accrual and deferral accounting is largely based on measuring an organization's revenue and expenses. However, there are some noteworthy differences between these concepts that you should be aware of.