What’s Your Value?
The Proof is in the Timesheet Pudding
Let’s talk about one of the least sexy — but most powerful — assets hiding inside your firm: structured timesheet data.
Yep, I said it. Timesheets. Before you roll your eyes or close the tab, hear me out. Your timesheet data might just be the key to unlocking smarter pricing, cleaner workflows, better resource allocation and way more profit.
The cold, hard fact is that structured data plays a powerful role in firms, helping them implement a true value pricing model while also helping optimize operations and rocket-boost profitability. And like it or not, timesheet data represents a data goldmine.
The problem is that firms are still operating within an outdated time-capture model. And let’s be real, historically, we suck at it. The traditional process calls for manual, honor-system data entry, which leads to a few big problems. The main issue is input errors, which hover at about 30% on average. Also, consider that most people report their time inaccurately in the first place — some working on a guesswork basis and others entering data when they have time to get to it. And then there are the “time eaters” who underreport time so as not to appear incompetent or slow. If you give a staffer 4 hours to complete a project and they take 6, you can bet they won’t report 6 hours. By year end, you have no idea what services take what amount of time to deliver.
Firms have not even come close to mastering time capture. And without accurate data, you can’t get the insights you need to put appropriate pricing in place. You also can’t begin to identify workflow inefficiencies (and fix them) without sound, predictive data in hand. And then there are resource allocation issues as well. For example, do you have a high-priced manager doing the work a bot could complete in minutes?
I get it. You need to be sold. So let’s look closer at timesheets, probably the most under-utilized and under-appreciated data source. Even if you hate timesheets like I do, just trust me on this one … and prepare to be enlightened.
Structured Timesheet Data Is Sexy
Most firms still don’t have a sound time capture process in place. And I get it, it’s not exactly the sexiest swimmer in the data pool. And who wants to deal with overhauling this process anyway? And while these hangups are understandable, they can no longer be an excuse because structured timesheet data packs one big sexy punch.
Timesheet data is pure gold. It’s the foundation upon which firms build success. With crystal clear insight into time, you can set a true value-based fee structure and identify process deficiencies. Basically: When you know better, you do better. So, whether you’ve been avoiding updating your timesheet process because it’s a pain or you think you suck at it, it’s time to put these hangups aside and tackle the issue of time capture. The sooner you do, the sooner you’ll reap the rewards.
A quick note for those who already price up-front: There’s no need to go backward. This is for folks who want to move forward with value-pricing or pricing model enhancements but have not yet been able to. It’s also good information for those looking to get buy-in.
AI Delivers Structured Timesheet Data
You knew it was coming, the AI stump speech. The effusive rah-rah language around the power of AI to transform firms into highly optimized, money-making machines. This is not hyperbole; I know it to be true.
I recently read a LinkedIn article that stated: “We can’t optimize what we can’t measure.” Truer words were never printed. And we all know that time capture has been a pain point for decades — it sucks.
But here’s the thing, we’re in the business of time. We set value-based fees on perceived value but also on the time it takes to process and deliver services. So, if you’re not operating within a data-supported, optimized system, how can you accurately measure profitability? You can’t.
With leading AI-powered timesheet platforms, elevating time capture is easier than you think. Laurel.ai is a great example. The company’s tagline: “Turn time into a profit center” says it all. Their goal is to help accounting firms increase profit and make the task of timekeeping easier by letting AI do it for you with amazing accuracy.
I think we can all agree that most employees report their time inaccurately anyway. Whether it’s indifference (which leads to sloppiness), simple forgetfulness or time eating, there’s no way most firms have accurate time data to work with. And that translates to inaccurate budgeting. There are so many possible punctures in traditional time capture that most firms are likely bleeding profits and leaving value outcome-driven profits on the table.
Here’s how it’s done…
Sophisticated AI platforms work quietly behind the scenes, accurately capturing and organizing billable activity. AI can differentiate between billable and non-billable activity being performed by staff. It’s crazy…crazy cool. And while it may feel a bit “big brotherly,” it’s the answer to an uber-optimized time capture process.
Just think about it. Your firm gets irrefutable data to support value pricing and build lucrative, recurring revenue streams. With value assigned to services, based on accurate data, this also enables you to build repeatable services that further boost profitability. Even more value is realized via process improvements and proper resource allocation. And finally, armed with data, you can approach clients about fee increases or expanded scope with confidence.
All things considered…
AI and structured data are part of the success formula. You can’t expect to optimize what you can’t measure. And until accounting professionals embrace modern time capture practices, which include AI-powered technology, they can’t begin to assess the value of their services, set real-deal value-based fees and optimize the hell out of workflows.
Here are the good and (not that) bad parts of embracing AI to maximize structured timesheet data.
Profitable pricing. Accurate timesheet data allows you to assess the time it takes to deliver services so you can set value-based pricing that boosts profitability. Structured timesheet data also offers predictive insights to help firms make smart decisions on future engagements and service tiers.
Elevating workflow. Lean on the data to uncover process weaknesses like unnecessary review cycles and overlapping communications. Optimizing internal workflows helps further boost efficiency and profitability. And you can’t expect clients to pay for your inefficiencies.
Enhanced resource allocation (over realization). Data reveals who is doing what for each client and the time being logged. This is the “hidden” data that firms have not been able to capture in order to allocate resources properly. For example, Does a $200/hour team member need to handle an hour’s worth of work or can a bot do it? If one staffer is more proficient at complex technical tasks, load her up. Other staff may excel at recurring, routine work. You get the picture.
Push back. You may get some pushback from staff on AI-enhanced time capture. It can feel like they are being watched, but the rewards far outweigh initial assumptions. For meticulous timekeepers who may see AI as unnecessary, be clear that it’s about removing manual work from their plates so they can focus on clients. For your lackadaisical timekeepers, it’s the same message.
All things considered, AI is looking pretty darn good. Not only can you take back your time by eliminating manual time capture, but you're also rewarded with irrefutable data to support true value pricing and the insight to identify workflow inefficiencies that are a drag on profits.
👀 Want more Radical insights — live?
Join me for a 🔥 fireside chat with Joel Hughes, CEO of Rightworks, on July 16 at 2 p.m. ET inside the Rightworks Community. We’re talking about what it’s really going to take for your firm to stay relevant in 2030 like AI, pricing, leadership and bold change.
🎟️ Save your spot: http://bit.ly/46siOAH
