Life without Timesheets? – Jason Dormer 28/08/08 | Dormer Finance Limited - Accountants in Basildon Essex covering Billericay, Laindon, Wickford, Brentwood

On a trip last week to an accountants seminar in Cornwall I met the accountant and author Hugh Williams FCA, of the award winning firm HM Williams, an accountancy firm recognised for it’s customer focused approach.

After discussing our views on fixed fees, value pricing and time based billing, it became apparent that Hugh was a man after my own heart. Hugh kindly gave me a copy of his book ‘Life without Timesheets’ in exchange for my promise to review it on a leading accountancy website.

Within his book (better than I could hope to), Hugh eloquently states the disadvantages of the traditional time based billing approach which many accountants still use, namely:

- Clients get charged by the hour regardless of any time consuming interruptions during that time (loo break, answering telephone etc)
- Timesheets are a chore and contain estimates
- Time recording software is an expense which gets passed on to the client
- There is no incentive for accountants to improve efficiency – in fact the opposite is true; the longer a job takes the accountant the higher the bill!
- An accountant who makes mistakes and takes time correcting them gets paid extra!
- Clients are afraid to contact their accountant knowing full well the clock starts ticking when the telephone is answered

Hugh argues, and I completely agree, that this is an unacceptable approach to any firm which is committed to exceptional customer service and continual improvement. In fact the opposite is true - timesheet based billing encourages inefficiency for the reasons outlined above.

Hugh goes on to state the advantages of fixed fees:

- Clarity – providing clients with a choice to accept the fee, request a reduction in exchange for a reduced level of service, or take his or her business elsewhere
- No surprise bills for the client
- Anxiety free access to support without fear of the clock ticking
- Sense of control for the clients that timesheets cannot give
- Budgetary control for clients
- Spreads the cost when implementing the fixed fee throughout the year
- Incentivises accountants to increase efficiency
- Timesheet administration is eliminated from accountancy practices, freeing up time and money

In my mind, the above is all commonsense – I know from dealing with lawyers (who bill me by the timesheet) that I have no desire to engage in anything but very short conversations with them. Should fixed fees become commonplace in the legal industry (and the smarter firms are already offering them) then I would be more than happy to discuss the weekends football results with my lawyer. Until then, I want those conversations short, sharp and on the subject matter only! Worse, I sometimes do not ask questions of my lawyers that maybe I should, as I know that a 20 minute conversation on the subject will result in an additional, hefty fee.

Further, I do not feel in control of my finances when engaging in transactions that I cannot be given a reasonable estimate of cost.

To me, this is not an acceptable way to do business.

Professional advisers need to have more empathy with what clients want – which is clear, fair, value driven pricing and the comfort of knowing that they will only be charged a pre-agreed price.

I am sure that Hugh would not object to me describing him as a ‘mature’ accountant having set up his practice 35 years ago, and I think that it is testament to his commitment to meeting clients needs that he has made the shift from the ‘traditional’ accountants pricing method to the ‘new school’ method. I salute him and thank him for reiterating to me the importance of life without timesheets.

If you would like to purchase a copy of ‘Life without Timesheets’ (£20) then please get in touch.

Comments 2

Hugh Williams wrote:
Just to thank you so much for this review. To be honest the accountancy profession have simply walked away from this book, and away from this concept, as if both had produced a nasty smell with which they have no intention of being associated. So reading what you have kindly put has restored some joy in my otherwise rather depressed attitude towards the profession that I really do love. Thanks very much indeed.
Posted 24 Nov 2008 at 10:29 pm ¶
Leeds Accountants wrote:
Well Jason and Hugh, I’m in the minority club as well!! I’ve never used timesheets in the practice and have no intention of ever using them.

My approach is that clients pay for a job to be done. They don’t care how long it takes, all they want is a set off accounts/ tax return etc. We fix all our prices in advance with the clients and then that’s it. No clock ticking, no worrying about picking up the phone etc.

Great review Jason. Hugh, don’t worry about the profession walking away from the book, it’s just that they don’t understand how to think differantly and change their habits from the last 100 years. keep up the good work!!
Posted 28 Sep 2009 at 5:06 pm ¶

Life without Timesheets? – Jason Dormer 28/08/08

Comments 2

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