- Work out revenue, gross profit, recovery and contribution on finished projects
- See average profitability by client, account manager and job type
- Learn which types projects are being over serviced so you can make the necessary changes.
- The data is summarised in tables and graphed out on the page.
What is recovery?
Recovery can best be described as the return you get on the amount of work delivered. wayahead looks at the invoice total compared to the total sell value of the job. The total sell value is the sum of all time entries (at sell value) plus the sum of all (non declined) expenses and orders on the job (again at sell value).
The sell value of our time entries, represents the theoretical sell value of the project, according to our price book. If my price book says Design is sold at $100/hr and I log 10 hours of it, the value of the job is $1,000. If I invoice the job for $1,000, I will have a 100% recovery. If I sell it for $900, I will have a 90% recovery and if I sell it for $1,100 then I have a 110% recover.
Recovery = total sell value / invoice value
Another way of putting it is that recovery looks at the blood sweat and tears you poured into a job and how much of that was recovered in billing.
One swallow doesn't make a summer!
While it is good to see the recovery for individual jobs, the focus of the report is to show the average recovery across multiple jobs for a client, account manager or job type. So we step back and zoom out a little. If my average recovery for a client over the last 25 jobs is 90% it means I have over serviced or under charged the client by 10% on average. We need to have a chat with this customer OR we need to get our act together about how we manage and perform their jobs.