Lamentations on the billable hour: Jamey Johnson’s “The Dollar.”
Nuke ’em: Kill timesheets before they kill the profession.
By Ed Kless
The litany of “challenges for the profession” repeats the narrative that has been well documented and continues to grow for over the last decade:
While there are more people graduating with degrees in accounting, fewer of them are sitting for the CPA exam. This is leading to fewer new hires for firms.
The new hires they do have are “millennials” who desire a challenge and think they should be made partner sooner rather than later.
Attrition, especially at the mid-career level, is over 10 percent and is mostly initiated by the professional, not the firm.
The loss of people in the middle and bottom of the pyramid is eroding the traditional economic model. Non-equity partners are increasing and funding for partner buyouts is disappearing.
Cries of “We must become more efficient,” and/or, “We must embrace new technology,” and/or “We must hold people more accountable,” reverberate in meetings.
Compliance work continues to flatline and while new offerings are growing revenue, they are not growing fast enough. Worse still those that do this work are often not even CPAs!
Presentation after presentation is viewed on the modern equivalent of the campfire, the conference room projector. “Our profession is sick, even dying. We might have cancer. We really don’t know, but it is bad.” It’s true, the profession does have cancer. The good news is, we know the cause and it is curable.
It is called “a timesheet.” It be must cut it out completely before it kills.
Accountants face only two major restrictions in determining their fees – the restriction against contingency fees under certain circumstances and the taking of commissions or referral fees.
When we asked this question in a poll, 26 percent of you had never gotten stiffed from a client… yet.
That’s good. But a lot of us have gotten stiffed or burned when we’ve not collected money from a client. It’s happened to us.
If you’re one of the smart ones it’s only happened once and never again.
What do we do when there is a billing dispute? First, yes, get paid up front and that’s a good policy.
Let’s talk about some situations where there is a billing dispute. First, if you have a big job and they want you to do some cleanup or catchup work and you estimate it will be a minimum of $2,000, you want them to pay you $1,000 up front before you do the work. If they’re not willing to pay you $1,000 now what makes you think they’ll pay you $2,000 later? Right, so they should be willing to pay some money up front.
Also, work happens. Many of us start out with lofty plans that go astray as the practice develops. Many things cause it – clients we get, availability or lack of availability of the right staff, how we choose to learn or not learn new things, and even where we locate. READ MORE →