The most efficient way of billing
There is a massive amount of confusion out there in the land of Accounting as to whether we should use time, WIP or job management billing.
Back in 2010 at my accounting firm, I was one of the first Accountants in Australia to learn about Xero and the concept of the single ledger. It was then that I knew that my accounting firm was going to be more efficient than others. Single Ledger and Cloud Accounting were going to change our processes, and we knew we could complete jobs a lot faster.
But what did that mean to the accounting firm? Well, back then we were billing based on the time it took us to complete a job. So why would I want my team to be more efficient? No matter how long it took to do the job, we'd charge for that time X the accountant/s hourly rate. Also taking into account some sort of commercial value to the job. E.g. What we billed last year.