EP515: Jonathan Stark - Why Hourly Billing Is Holding Your Bookkeeping Firm Back

"The hardest thing is to not try and solve their problem in the sales interview, just listen to the business case, and then come up with clever ways to achieve that business case really as easily as you possibly can. So you're looking for smaller projects, not bigger projects. It's, it's a complete mind shift.”
- Jonathan Stark

Jonathan Stark,  author of Hourly Billing is Nuts, breaks down why hourly billing holds you back. He shares how shifting to value-based pricing changes your income, your clients, and your time. Jonathan explains how writing, teaching, and niching help you stand out, and why clients buy outcomes, peace of mind, and confidence, not hours.

In this interview, you’ll also learn:

  • Why hourly billing rewards inefficiency & limits growth
  • What mindset shifts you need to stop selling time
  • How specialization & authority support higher pricing

To learn more about Jonathan, click here.

Get a copy of his book, Hourly Billing Is Nuts, at this link.

Connect with him on LinkedIn.

Time Stamps

00:58 – Why hourly billing is nuts & how Jonathan discovered it
04:00 – Discovering value-based fees & applying them in year one
05:40 – Breaking the habit of scoping during sales calls
09:18 – Pricing options based on outcomes, not deliverables
11:30 – How fixed pricing improves trust & client behavior
16:21 – Connecting your work to revenue growth or cost reduction
18:55 – Selling peace of mind as a measurable outcome
20:58 – Why working fewer hours should not mean earning less
22:31 – How AI & automation increase value, not risk
25:35 – Why predictable pricing benefits both you & your clients
29:00 – Identifying what different clients truly value
31:09 – Letting go of poor-fit clients to grow sustainably
36:10 – Why Jonathan wrote Hourly Billing Is Nuts
38:57 – Books that support the shift away from hourly billing
42:17 – What it means to “own your authority”
44:25 – Why being different matters more than being cheaper
47:07 – Using specialization to escape price competition
48:57 – Writing as a long-term growth strategy
50:12 – Where to find Jonathan’s free resources

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Business Management