Charging for her time actually reinforces inefficiency. Whereas, an hourly rate doesn’t encourage Donna to quickly complete her tasks. They want the work quickly completed to pay the least amount of money necessary. Tracking time isn’t fair to her or her clients. Five minutes here and there, or time spent with customer service, quickly adds up.
#TRACKINGTIME PRICING FOR FREE#
Dealing with these things cost her about $10k annually.īy the way, we didn’t even go into the work she does for free because she doesn’t know how to charge for it. We got out our calculators to figure her time spent chasing money.
Declined credit cards, clients upset about larger bills than expected and writing off for non-payment. Periodically she needs to address payment issues. As a result, her invoices rarely go out on time. Since Donna doesn’t routinely track her hours, she painstakingly recreates her time sheets at the end of each month. Both options stress her out.Ĭharging by the hour actually takes time away from client work. Or, she writes off the additional time spent working. Either her clients receive a larger bill than expected. When that happens, she faces two options. Without a thorough diagnostic, things take longer than originally planned. We continued to discuss the downside to her hourly rate. #getpaidwhatyoureworth Click To Tweet The Downside to Tracking Time That’s because they hire you for a result. The hours you spend gathering data don’t really matter to your clients. Basically, they want her guidance on ways to save money and how to increase their profits.
That’s because clients hire her for consulting and CFO services. The hours she spends gathering data doesn’t really matter to her clients. She claims charging an hourly rate keeps things fair. How would I know if a job was profitable? Donna admits that letting go of time sheets feels slightly uncomfortable. When we originally met she charged $75 per hour. Drawbacks of Tracking Timeĭonna left her corporate position as a financial analyst to start a bookkeeping firm. Tracking time however, has major pitfalls. You do the work, bill for your time and then expect payment. Now I realize charging an hourly rate is the easiest way to get paid for your work. This pricing strategy, which sells your time, literally caps your earning potential. Does tracking time feel like a hassle? Like many accounting professionals, you do it anyway since profitability and time are linked together.
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