Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Posts Tagged ‘timesheets

Dump the timesheets? Not so fast.

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There is a movement afoot in the CPA world to get rid of timesheets.  A major part of the concept is to move away from billing by the hour and move toward “value billing.”

Instead of charging based on how many hours you spend, bill the client for what your services are worth or what you can negotiate in a lump sum.

In my tiny part of the accounting world, I’ve been billing on a fixed price basis for the vast majority of work for around 20 years or more.  (So does that mean I was a value-biller before value-biller was cool?)

Getting rid of the timesheets entirely is an idea I have been highly uncomfortable with, but hadn’t thought through why.

Until now.

Ed Mendlowitz, CPA, has a great article at CPATrendlines explaining the reasons I’m uneasy. He explains 13 Reasons Timesheet Will Never Die.

In one sentence, look at the opposite side of the income statement – timesheets are a cost control.

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Written by Jim Ulvog

May 15, 2012, 9:04 am at 9:04 am

Posted in Audits, Pondering

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