Tuesday, December 17th, 2013

Time & Billing – Enlightening Your Team About Time Entry

photoIf you are a value pricing firm, disregard.  Good for you and I bet you have a lot of happy team members. I also imagine that you have well-trained managers who mentor and guide them through client engagements.

If you are not a value pricing firm, like most of the firms I talk to and work with, I bet you get the questions, “How do we enter our time for traveling to a client location? Is it chargeable or not?”

A question on the AAA discussion forum (Q&AAA), influenced this post. I see a variety of ways that firms handled this situation.

Just FYI, here’s what I recommend:

  • Team members record time in excess of their normal commute if going to a client site directly from home.
  • The time code used is one-half of their normal billing rate. This allows the team member to have chargeable time.
  • Mileage is also charged to the client.
  • If leaving the office to go to a client site – the team member records their time and mileage from the office to the client site.
  • Tell your team members: Do not make a billing decision when recording your time – accurate time entry is a top priority.
  • All time related to a client should be recorded. Each team member should ask themselves, “Would I be doing this task if we DID NOT have this client?” If the answer is, “No,” then it is chargeable time.

DO NOT confuse chargeable time with billable time. All chargeable time should be recorded – – – it does not mean that it will all be billed.

Consider hosting a training session on time entry in early January, just to refresh the experienced people and to help enlighten new people. It is important to communicate  the FIRM way and not leave it up the whims of individuals. First step, get all the partners on the same page if you are a “one-firm” firm.

  • "The only reason for time is so that everything doesn't happen at once."
  • Albert Einstein

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