What is a client realization report?
A client realization report is a financial report that is used by CPA (Certified Public Accountant) firms to assess the profitability of their client relationships. The report shows the percentage of billable time that was realized, or actually invoiced and collected, for each client over a certain period of time.
The purpose of a client realization report is to help CPA firms identify which clients are the most profitable and which ones may require adjustments to their billing or service approach. It can also help the firm to identify areas where they may need to improve their efficiency or adjust their pricing to ensure profitability.
CPA firm management can use client realization reports to make informed decisions about resource allocation, staffing, and service offerings. By analyzing the data provided by these reports, the firm can identify which services are the most profitable and which clients require more attention to improve their profitability.
Overall, a client realization report is an important tool for CPA firms to manage their client relationships effectively and ensure that they are providing high-quality services in a profitable manner.
The client realization is calculated when a invoice is created in Firm360.