Better Business Through Data Analysis & Monitoring My Account

Identifying Churn in AR

IDEA Tech Tip

Customer churn (also known as customer attrition, turnover, or defection) is when a customer decides to stop engagement with your company.

IDEA can help easily identify “churn” in accounts receivable by following these steps:

Perform a File Compare between the current and prior year databases. A File Compare will take the detail AR from both years, summarize, and join the databases. A difference column calculating the current and prior year balances will be created automatically. To determine potential AR churn, index the field containing the number of records (NRECS_2017) for the current year in ascending order. If that customer has a balance from the previous year, then it tells us that although they have a balance in both years, the decrease in activity (NRECS_2017 vs. NRECS_2016)) suggests that customer engagement has dropped off.

AR Churn Analysis

Print

Number of views (843)/Comments (0)

Mario Perez
Mario Perez

Mario Perez

Mario, Audit Analytics Consultant, has over 12 years’ experience as an IDEA user, trainer, and provider of technical support and consulting services. Starting with his introduction to IDEA at BDO New York, he’s leveraged an enthusiasm for data analytics to travel the world as a consultant, including working with the IDEA distributor in Scandinavia.

Other posts by Mario Perez
Contact author

Please login or register to post comments.

Name:
Email:
Subject:
Message:
x
Identifying Churn in AR
19 April 2018

Identifying Churn in AR

IDEA Tech Tip

Customer churn (customer attrition, turnover, or defection) is when a customer decides to stop engagement with your company. IDEA can help easily identify “churn” in accounts receivable by following these steps...

Read More

Jeremy Clopton Joins Integration Partnership Program to Help Professionals State & Sustain Their Use of Data Analytics
18 April 2018

Jeremy Clopton Joins Integration Partnership Program to Help Professionals State & Sustain Their Use of Data Analytics

Data analytics & fraud detection expert Jeremy Clopton joins the Audimation Integration Partnership program to help organizations leverage data analytics.

Read More

Think Like a Thief to Catch One
11 April 2018

Think Like a Thief to Catch One

Apply Logic to Detect Peculiar Behavior

When working with rows & columns of data to spot suspicious behaviors, fraud & errors can look very similar to one another. Tips on sniffing out fraud.

Read More

5 Elements of a Successful Data Analytics Program
12 March 2018

5 Elements of a Successful Data Analytics Program

Building a successful, sustainable data analytics program takes effort…and a few other elements.

Read More

The Power of Field Statistics
7 March 2018

The Power of Field Statistics

IDEA Tech Tip

IDEA’s Field Statistics can save you a wealth of time. It should be the first thing you go to after importing a file. Why?

Read More

Using Data Analytics to Prepare for Fieldwork
20 February 2018

Using Data Analytics to Prepare for Fieldwork

Automating High-Risk Transactions with IDEA

See how a global corporation used IDEA to develop an automated process to prepare auditors for on-site work.

Read More

People. Processes. Tools.
5 February 2018

People. Processes. Tools.

Successful Integration of Data Analytics

Expert IDEA users share their experiences and advice for building and sustaining a successful data analytics program.

Read More

Planning & Scoping Your Audit with Data Visualization
1 February 2018

Planning & Scoping Your Audit with Data Visualization

Data-Driven Insights Save Hours of Effort

Here are some ways IDEA can help you plan and scope an audit using the data visualization features within IDEA.

Read More

Classroom Collaboration at University of Missouri - St. Louis
30 January 2018

Classroom Collaboration at University of Missouri - St. Louis

Student Learn to Develop Analytic Tests

Masters students attending the University of Missouri - St. Louis share their results using data analytics to assess risk, test 100% of the data population.

Read More

Do One Thing Every Day that Scares You
30 January 2018

Do One Thing Every Day that Scares You

Virginia Tech Students Gain Confidence Using Data Analytics

Learn how Associate Professor of Practice Nadia Rogers, CPA, introduced students to IDEA, including types of audit tests that can be performed within the software and various documentation aspects of an audit engagement.

Read More

New Features in IDEA 10.3
29 January 2018

New Features in IDEA 10.3

IDEA now runs faster and offers more flexibility than ever before

The latest version of IDEA introduced a host of new features and improvements.  IDEA now runs faster and offers more flexibility than ever before.

Read More

5 Ways Data Analytics Saves Time
26 January 2018

5 Ways Data Analytics Saves Time

Turn Hours of Work into Minutes

5 time-saving ways data analytics can help you shrink your audit time, while improving the quality of your work.

Read More

Tired of Wrangling Cumbersome Client Data?
24 January 2018

Tired of Wrangling Cumbersome Client Data?

10 Ways Our Importing Services Make it Easy

10 reasons to try our data importing services, which save you time, effort and undue frustration. 

Read More

A Journey in Using Data Analytics
24 January 2018

A Journey in Using Data Analytics

Testimonial from Brian Cullum

Read how Brian Cullum used IDEA to help identify a multi-million-dollar fraud based on the overstatement of the borrower’s lending base.

Read More

RSS