Tracking Recoverability & Client Lifetime Value

The report shows the total recovered from each client and trends over time.  This includes how much was written off and gives an indication of client profitablity.

Recoverability reporting is now available in CRM for Accountants with values being populated from IRIS daily.

Typically, recoverability reporting displays the rate only as a percentage which can obfuscate the true value of the recovery cost.

Our report consists of an amount, a percentage and you can choose to group the report by different measures allowing a customisable report to match the demands of the practice. This provides a more conclusive report via which better business decisions can be made.

Because, as aforementioned, recoverability rates are often shown as a percentage figure, this can lead to not knowing the actual amount that has been under recovered. The CRM can show the under recovery. For example, maybe your new bookkeeping service has a recovery rate of 70% and generates £90,000 in revenue per annum. By identifying under-recovery, which might be due to unforeseen work that your staff had to do which was un-billable, means that you can quote for work more accurately in the future.  Thus helping to recover additional lost revenue (in this case over £38,000).

The benefit of having this report in CRM for IRIS Accountants is that you have the freedom to manipulate the data. Graphs can be placed within the report to show a visual analysis of many things i.e. grade, industry or age of client.

As well as displaying the figures we also provide current year, previous years and the life time values per client. This means that an overall view of the client can be seen and show that although a client might seem bad for the current year, in retrospect it’s actually a good client.

The advantages of having a recoverability report within the CRM

  • Inform client grading exercises
  • If clients aren’t being graded then the recoverability report can be a great way to support this. A workflow can be set up to grade the clients based on how beneficial they are to the company. As the data is constantly being updated, this can run continuously. Better graded clients can be nurtured more and lower graded clients can be monitored
  • Customise how you want to display recoverability
  • If you work out the recoverability of a client a certain way, it is possible to replicate that in the report
  • Agree pricing structures
  • Allocating a cost to clients beforehand to increase the recovery percentage. Many firms will agree on a price having allocated to do some of the work themselves. However these tasks are not always completed, leaving it up to the accountant to shrug it off and do the work themselves. By doing this, the firm ends up charging the client the same for doing more work. For clients with low recoverability rates this can be a good exercise to charge the clients more but take over some of the responsibility
  • Help with performance review
  • It’s not about money that has been lost, it’s about money that hasn’t been made. By applying better practice and analysing the work clients are producing, profit, motivation and efficiency can all be increased.

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Finalist for software Innovation of the year 2019