Account management is a function that is performed by in-house accountants or by freelance professional accountants. In the latter case, compensation is usually lower, which means that the company saves more. The downside is that the payment of compensation for the accountant under this scheme is sometimes done on an hourly basis instead of on an output basis. This is so because of the nature of the work performed. Accounting work is a tedious and technical process that requires the utmost in accounting and analytical expertise in order to balance a companys finances. The work usually involves the management of finances, balancing expenditures, management of accounts, and computation of taxes. Those who obtain the services of accountants who are paid by the hour are usually the smaller companies who do not have complicated or extensive accounts. However, for the sake of minimizing expenditures, there is a need for the company to keep track of the account manager billable hours.
By the nature of accounting work, it can be concluded that an entire accounting job may be completed in a matter of days, with a specified number of working hours per day. However, let us say that the accounting job is simple enough to last only one working day, and that the accountant is to be paid on the basis of the number of hours spent within the day. There will be a need to monitor the billable hours so as not to incur substantial expenditures. Thus, what measures can a company take in order to monitor an account managers hours rendered for the performance of the contracted work?
The company, primarily, must take a record of the time the accountant began working. This may be done by using written or digital records that are filled up by the accountant. This way, the time when the accountant started working and the time when the work has been completed is well documented. Then, in order to keep track of the time that elapses, the company may use timekeeping software specifically programmed to measure the amount of time used up by the accountant. It is more recommended to make use of timekeeping software because it minimizes incidents where records may be tampered in order to defraud either the company or the accountant. The use of software also eliminates the companys frequent need to monitor the passing time constantly. Finally, the company can be sure that the time reflected on the software is the exact time and that the company will be billed for the services of the accountant for precisely the amount of time spent performing the contracted work, without any second to spare.
Taking note of account manager billable hours is an efficient way to save on expenses instead of employing a full-time, in-house accountant. In fact, the company may even have to choose and decide which accountant to retain based on their capabilities, since an accountant who can perform the same accuracy of work in lesser time will surely mean more savings for the company.