Learn how high-performance accounting firms increase recoverability using patterns vs outliers. Discover practical strategies to improve pro
In this video we look at how High-Performance Firms increase recoverability using a patterns and outliers approach.
Recoverability is one of the clearest measures of firm performance because it shows how well your team’s time is being turned into revenue. Put simply, it tells you whether the work being done is actually being recovered through invoicing, or whether value is quietly being lost along the way.
To understand recoverability properly, you first need to understand Work in Progress. Work in Progress is the value of work completed for a client that has not yet been invoiced. It starts as production. Then it becomes an invoice. Then, once collected, it becomes cash in the bank. That flow matters because recoverability sits in the middle of it. If you do not understand how Work in Progress is being built, billed, and cleared, it becomes very difficult to understand what your write-offs are actually telling you.
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