Annual Rate of Return

This is a monthly view where the results are updated each month. Usually, the clients for a given year are divided into the base clients for that year (the clients who entered that year)
and the new clients sold during the year.
This report allows you to calculate the all-important revenue retention ratio mentioned earlier.
This report is also used to calculate the annual growth rate of your accounts, as well as the total number and percentage of accounts during the year, and your base revenue during the year.
If the contract end date is accurate, it can also be used to calculate the total revenue during the contract.
Another metric that can be obtained from this report that is very useful for tracking is the ratio of total revenue under contract to the annual rate of return.
This revenue by customer report shows the end date of each customer’s contract and each client’s contract end date and monthly invoice, which makes it
you can easily calculate the total revenue you have contracted.
Divide this number by the annual rate of return at a given point in time to get the ratio.
The average client’s contract term is often two years.
This is an excellent ratio.
This is not an indicator that you need to keep up with on a daily basis.
However, it is a very good thing to calculate and track at least quarterly.
By calculating and tracking it at least quarterly, you can get an idea of the status and predictability of your backlog.
Not only will this report generate a number of important metrics, but it will also
It provides an “”eye-to-eye”” view of the health of your business.
Each month, you can look at all the customers on your list and assess whether things are going according to plan, what important contract renewals are due, etc.

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