May 9, 2017

What about timesheets?

Reader Michael Maccaroni wrote in to ask (shared with permission):

Hi Jonathan,

I am wondering where you stand on timesheets. I realize you don’t have any employees but in my business I don’t have the luxury of passing on implementation. My firm insists on timesheets even for work on value priced clients.

Mac

As Mac points out, I don’t have employees so I don’t really have a horse in this race.

Generally, I think it’s bad practice for firms to keep timesheets after committing to value pricing because it is a clear indication that management doesn’t really understand value pricing.

For more specific arguments against the timesheet, I’ll defer to recovering CPA and author of Implementing Value Pricing, Ron Baker.

He and Ed Kless refute every argument in favor of timesheets in this episode of their podcast:

Episode #109: Trashing the Timesheet

Enjoy!

Yours,

—J