For the past two decades, I have watched accountants price services based upon the cost of labor plus a desired profit. This is the effort-based economy trap.About 15 years ago, we developed a pricing matrix for consulting services in an attempt to capture the perceived value of the services in the eyes of our clients. We coupled this with a strong engagement letter that clearly defined the scope of our services; in addition, we utilized change orders as engagements expanded.
Industry experts believed that model was fine for us, but said that it would not work in the accounting profession. Many of those same experts have cited similar reasons why value billing won't work, and re-iterated the importance of the time sheet to Ron Baker.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access