One More Nail in the Coffin of Time-Based Billing... Hooray

I've recently come across a brilliant article about value pricing. This article was written for accountants but I think every professional service firm and solo practitioner can benefit from it. One aspect of getting away from time-based billing is to abolish the use of time-sheets inside the firm.

In my opinion time sheets are not to be used to measure people's performance and paying them for the amount of time, but they are to be used to track how many hours the firm invest in a project, so after completion, the project team can debrief and assess how profitable the project was. You can correlate your total fees against the number of project hours, and see how profitable the gig was. So, if necessary, next time you can adjust your approach.

In the meantime, enjoy the article.