The Time Sheet is Only One Measurement of Performance
While the time sheet is an integral part of most accountants’ lives, it is not the measurement of performance that many believe. A time sheet is nothing more than an accountability tool. In my opinion, the profession has erred because the time sheet was never intended to be a measure of value or a pricing tool. Value is defined as the monetary worth of a good or service. The time sheet is simply a historic record of the cost of delivering a service. Yet many firms don’t even utilize their practice management systems to calculate total labor and overhead costs. They simply use them to calculate a standard rate or price.