History and Death Knell: Billable Hour RIP

by Lynnea Bylund on November 21, 2011 · 1 comment

In 2019, your law (or accounting) practice will use cloud accounting, a paperless office, and the iPad-10. But those won’t be the biggest changes to how you run your practice. Instead, the biggest difference will be in the way you value and price what you sell. And before you can make that change, you have to understand what it is you sell. Spoiler alert: It isn’t “legal or accounting services,” and it sure as heck isn’t “hours” or “time.” Instead, lawyers and accountants sell knowledge. How you value and price that knowledge will be the greatest change in your fast arriving future practice.

Jacksonville Florida CPA Chris Farmand posted to his April 16 blog a snippet from a Ignite Law talk by Jay Shepherd , founder of Prefix LLC. Jay shared in just 6-minutes, “How you will practice law in 2019.”  We learned that the billable hour was founded in 1919. Who knew? Jay goes into detail on how the legal and accounting professions can move away from the century old billable hour. Pricing based on solutions is cool; old crusty time sheets are not. If this type of TEDx learning/awareness is happening in the legal community, we see major hope for us in accounting. 

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