18 Reasons to Trash the Timesheet. Next, read The Case for Timesheets.
Value-Pricing or Hourly-Billing: Which works better and why?
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By Ed Mendlowitz
If you've read the "The Case for Timesheets," you might think I couldn't live without timesheets. But I know many firms use their timesheets differently than I do.
But first: The business model of not using timesheets recognizes there is a new way accounting services are being delivered to clients and so we need a new way of managing the accounting firm. This new model is explained and charted excellently in a logically understandable book that I highly recommend which is From Success to Significance: The Radical CPA Guide by Jody Padar.
Based on the partners and firms I know, most use timesheets only for billing and determining staff “bonuses,” which are substantially based on “excess” hours, rather than exceptional performance and client service.
Working long hours on a client does not equate to effective value transference. Because of this, I believe these partners are short-sighted and actually do not understand how to fully run their business. I have used timesheet information as a valuable tool to great success.
However, today I want to trash the timesheet and present my reasons for value-pricing.
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