Is Your Firm Billing Based On Time Or Value?

In some professions, charging by the hour is the most appropriate way to bill one’s clients, since his/her time is usually blocked off in hourly increments – i.e. tutors, athletic trainers, therapists.  The range of the hourly fee, however will vary greatly based upon location, expertise and experience of the provider. I think it is safe to say that we would all comfortably pay more for a batting lesson with A-Rod than we would for one from our local high school baseball coach.

Now imagine, if after one session with A-Rod, you asked him to help get you to your end goal – to consistently hit an 92 mph fastball. Do you think he would sit back and start calculating the hours that would be involved and multiply them out by his hourly fee? Or would he be more inclined to give you a set price based upon the work that will need to be done on his end to get you to your goal? I’m guessing the latter and without question. Why? Because A-Rod has demonstrated the value that he brings to the table.

For Accounting firms, demonstrating this value may take more time and effort. However, in an industry that is currently being transformed by AI and automation,  continuing to bill hourly will only impede your decision to embrace innovation and technology. At the end of the day your clients are paying for piece of mind, not time…read on for additional insights.