A Case Study In Effective Client Classification

A very beneficial activity in an Accounting Business is to properly Classify Clients and then take action based on those classifications. A well-designed classification exercise usually reveals interesting (and sometimes surprising) information.

This is best illustrated by an example, in this case, a sizable firm in South Carolina. Here's a summary:

The Data

Using a Panalitix Client Classification tool, we found that:

• Total annual revenues: $7.1 million
• Total clients: 1,150
• Average revenue per client: $6174
• 161 (or 14%) "high-end" Clients generating 54% of revenue
• 426 (or 37%) of Clients generating 80% of revenue
• 282 (or 25%) of "low-end" clients generating 2.2% of revenue