Timesheets are not dead, along with compliance services. 83% of firms are still completing timesheets which has remained similar over the past years poll results. Results show smaller firms under $500k have a large number of firms not using timesheets compared to 100% of firms over $4m completing timesheets.

On average, the accounting profession will increase their fees by just 2% for the 20-21 year. (The lowest result over the last 5 years). This can be compared to a 5% charge rate increase in 2020, and half the increase forecast in the 2018 year.

One of the most requested pieces of Good Bad Ugly data is director/partner charge rates. Are they increasing in 2021? Simply, yes to an average of $327 per hour. We recommend you review the charge rates table to identify the director/partner charge rate based on your revenue group which has a range of between $252 and $427.

Pricing

Are pricing methods changing within the profession? It seems that firms are equally divided in the way they price their services:

  • 32% – Review WIP (but look at last year’s fee and increase by a certain percentage)
  • 25% – Time charged to WIP x charge rates
  • 33% – Value bill what the job is worth
  • 10% – Other

Research reveals if you send your client invoice closer to the completion of the job, the faster you will get paid. On average 61% of firms send the invoice at the completion of
the job compared to 13% who send the invoice at the end of the month in which the job was completed.

Just 5% of firms request an upfront retainer and only 19% have some kind of periodic fixed recurring invoices (monthly/quarterly).
These results have remained consistent over the past few years of conducting the Good Bad Ugly – Rates, pricing and Outlook poll.

*Report based on 205 participating firms

 Click Here to download your copy of the 2021 Rates, Pricing & Outlook Report