When an association collects a full year of dues at the start of a membership period, it has not yet delivered a year of benefits. Under accrual accounting, the payment is recorded as deferred revenue and recognized as revenue over the membership period. Event registrations received before the event are often treated the same way.
This creates a familiar planning gap. Cash arrives in the renewal season, while revenue is spread across the year. Budgets, forecasts, and cash outlooks need to keep receipts and revenue distinct, or the organization may misread its position in either direction.