I heard Carl Smith discussing this a while ago and found it useful to post my notes here. I have a love/hate relationship with hourly billing, but this perspective creates mutual transparency and accountability.
When billing projects, bill to a regular schedule vs a milestone. When you bill to a milestone it changes the way you work. You may skimp to try and get that bill out sooner.
Ngenworks bills like this…
They bill hourly, based on the worth they’ve done, within a budget, every month.
Every Monday their clients get an email that shows exactly how many hours were spent, the category they were spent on, and where they are for the month, where they are for the total project and where they are for that week.
So there’s no questions.
So if the clients request something new, the additional costs show up in that Monday email.