{"id":187948,"date":"2025-04-16T12:07:20","date_gmt":"2025-04-16T12:07:20","guid":{"rendered":"https:\/\/peraltafinancing.com\/accounting\/why-its-time-to-let-go-of-the-time-is-money-mindset\/"},"modified":"2025-04-16T12:07:20","modified_gmt":"2025-04-16T12:07:20","slug":"why-its-time-to-let-go-of-the-time-is-money-mindset","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=187948","title":{"rendered":"Why it’s time to let go of the ‘time is money’ mindset"},"content":{"rendered":"


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If time is money, why are you giving so much of it away for free? For example, in free \u2018discovery\u2019 meetings that go on way too long,<\/p>\n

It\u2019s a fair question \u2013 especially for accountants who\u2019ve built their careers around billing by the hour. But in a world where fixed fees are becoming the norm, I\u2019m not sure that the old mantra \u2018time is money\u2019 warrants the faith some people ascribe to it.<\/p>\n

Back when I started in practice and when all accountancy firms and tax advisers, like lawyers, seemed to bill for their time, it probably made sense. But, these days, however you choose to set your fees, I\u2019m increasingly convinced that sticking rigidly to that mindset can hold you back.<\/p>\n

There\u2019s a number of reasons for this and if you read on you\u2019ll see why I conclude that, even for accountants, \u2018Time is life\u2019 <\/strong>and we should spend it wisely.<\/p>\n

You\u2019re not a factory worker, and this isn\u2019t the 1800s<\/strong><\/p>\n

The phrase \u201ctime is money\u201d was coined by Benjamin Franklin in the 18th century. Back then, it had a point. Work more hours, earn more cash.\u00a0 This attitude continued for over a hundred years and some law firms, especially, still seem to be wedded to the concept. Work harder and longer hours and you earn more. But this isn\u2019t true for everyone any more.<\/p>\n

And, let\u2019s not forget that implicit in this approach is the simple fact that it rewards inefficiencies. The longer you take to do something, the more you earn. That\u2019s not good for anyone, is it?<\/p>\n

And today, if you\u2019re charging fixed fees, spending more time on a job also doesn\u2019t mean you\u2019re earning more. Quite the opposite. It could mean your profit margin\u2019s disappearing down the drain.<\/p>\n

In modern accountancy, value isn\u2019t tied to time \u2013 it\u2019s tied to outcomes.<\/p>\n

if every hour has to earn the same, you\u2019ll never have time to grow<\/p>\n

Still tracking your day like a taximeter?<\/p>\n

That\u2019s fine when your goal is to stay busy. But what if your goal is to build a better practice? A more profitable one? A more enjoyable one?<\/p>\n

You need time for the things that don\u2019t appear on a timesheet:<\/p>\n