# Matching Principle

*Accounting & Reporting — Finicade finance glossary*

The matching principle requires expenses to be recorded in the same period as the revenue they helped produce. It's the reason a machine is depreciated over a decade rather than expensed on purchase, and why commission on a multi-year contract is spread rather than booked at signing. It's also the source of most accounting judgement, since matching requires estimating a future the accountant cannot see.

**Also known as:** matching concept, expense recognition principle

**Related terms:** [Accrual Accounting](https://finicade.com/glossary/accrual-accounting), [Revenue Recognition](https://finicade.com/glossary/revenue-recognition), [Prepaid Expense](https://finicade.com/glossary/prepaid-expense), [Accrued Expense](https://finicade.com/glossary/accrued-expense), [Depreciation](https://finicade.com/glossary/depreciation)

Source: https://finicade.com/glossary/matching-principle