Time to Move Away from Billable Hours?

August 6, 2014

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Isn’t it time to move away from billable hours?

Some firms still use billable hours internally to help calculate a fixed monthly rate for a portion of clients. On the other end of the spectrum are firms that completely discard the notion of an hourly metric and instead use “value pricing,” in which prices for all—or almost all—clients are based on the value of the service provided to the client.

Three-quarters of U.S. accounting firms use some sort of fixed-fee pricing, according to the 2012 National MAP (Management of an Accounting Practice) Survey, which was sponsored by the AICPA Private Companies Practice Section in association with the Texas Society of CPAs. The percentage of firms using value pricing jumped to …

Click here for JOA article by Chris Baysden, August 2014