No Time Sheets; No Hourly Rates

Photo of a man who might be a CPA I was trained in Public Accounting, as a CPA. I’m not sure that’s a good thing; I’m pretty sure it’s not a bad thing. Before you ask, I don’t do tax returns and I know very little about IFRS other than the acronym and that it’s important.

I do know, however, that time was important in public accounting. We lived and died (not literally, but in our careers) by the billable hour. More was better; too few and you’d find yourself in the unemployment line or looking for another job.

For management, it was an easy way to judge our contribution. Clients often didn’t receive it very well, particularly when the invoice was more than the “estimate.”

As of March 1, 2012, the only billable hours at DGG will be those we have to track because of existing contracts. Those contracts will end sometime in the next 8 or 10 months, and we will offer fixed prices to all of those customers.

Net results? (a) We can focus on delivering quality rather than billable hours. (b) We will manage delivery of a high quality product on time and on budget rather than managing the number of hours. (c) Customers will know exactly what the invoice will be at the end of the work. No surprises.

So, the billable hour is dead at DGG. Time sheets are dead. Hourly rates are no more.

From now on, we’ll use the time we save to help customers get more profit out of their existing systems. That was how I got into this business in the first place, and it’s what DGG is best at.

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