Early Revenue Recognition is the practice of recognizing income before the delivery of goods or services, or before they have been invoiced. It can be a risky strategy and must be carefully managed to ensure accuracy and compliance with accounting standards. Companies that choose to recognize revenue early need to understand the risks associated with this decision including overstating revenues, creating inaccurate financial statements and violating regulatory requirements. Appropriate internal controls and procedures should be implemented to ensure accurate reporting of financial results.