Breaking the Billable Hour | Gear Up For Growth

Firms that price for time rather than value are holding themselves back. Gear Up for GrowthWith Jean CaragherFor CPA TrendlinesFor decades, accountants have relied on billable hours, tracking time spent on client work and invoicing accordingly. However, according to Michelle Golden-River, CEO of Fore LLC, this model is fundamentally flawed.“Accountants have taken their cost structure—allocating hours to clients and projects—and turned that into their revenue model,” she explains. “They’re not supposed to be the same thing.”Gear Up for Growth spotlights the best strategies for smart and effficient growth in today's competitive landscape. More Gear Up for Growth every Friday here.|  More Capstone Conversations with Jean Caragher every Monday | More Jean Caragher here | Get her best-selling handbook, The 90-Day Marketing Plan for CPA Firms, here | More CPA Trendlines videos and podcasts hereDespite the evident inefficiencies, many firms remain resistant to change. David Yeghiaian, chief strategy officer for KerberRose, noted that the biggest hurdle is uncertainty: “They're just not used to it. There’s a fear of getting the pricing wrong—what if I estimate too low? What happens if a client expects more than I anticipated?”Golden-River counters this fear with a broader perspective: “The biggest hurdles aren’t just about pricing. We need a broader business model change to support a revenue model change.” This podcast was originally published on 10/24/2024