Better time management of finances means freeing-up time for prospecting and winning new business; it also means more time to mentor staff, manage key accounts, and perhaps most importantly, spend time away from work with family and friends.
The nineteenth century Italian economist, Vilfredo Pareto, identified that in most cases, 80 percent of a desired result is generated by 20 percent of the particular activity - the ‘80/20 rule'. While this concept is typically applied by SMEs to how they generate business, it can translate to almost any scenario, particularly efficient financial management.
SMEs are probably the sector of the business community most familiar with the challenges of time management. Often under-resourced and over-worked, finding enough time in the day can be a real struggle. Time, however, is essentially the one thing SMEs really can control.
The following tips will help you gain control of your finances during your working day, keep you focused on those tasks that most influence the financial success of your business and minimise the time spent fighting fires, bouncing from one problem to the next:
- Take stock
Before planning for the future, you need to take a close look at how you currently operate. For example, record exactly how your time is spent managing your business' finances over a week, noting what time you spend in ten minute blocks. It can be hard work tracking everything you do, such as preparing cashflows, reviewing month end results, etc, but well worth it.
Not only will this exercise clearly show how effectively you are spending your time, it will also help you to identify the areas that are causing any unnecessary work.
- Assess
Look at exactly how you spend your time administering your business' finances. Categorise each activity, considering its importance, and its urgency. This will help highlight the tasks that could be delegated, better managed or eliminated altogether. It will also help identify what aspects of your daily financial activities result in the biggest return for your business.
- Planning
Know where your priorities lie and it will be easier to plan ahead.
First, consider the month as a whole - the bigger picture. This will help you to decide when to start work on any up-coming finance projects, such as budgets, before time becomes too tight and will also indicate if you are taking on too much, particularly at peak periods such as months end.
A more detailed picture can then be developed looking at each week ahead. This is when you can factor in any new tasks that have arisen, as well as regular finance meetings, appointments and other pressing commitments.
- Daily schedule
With longer-term financial planning in place, you'll find it easier to organise any daily activities effectively. List any tasks that need to be completed and rank in order of importance. This is where a little discipline comes in handy - tackle the toughest tasks first! Make them a priority, and put them to the top of your list. It's important to leave some time slots free in your day so that you can comfortably deal with urgent matters should they arise.
- Learn to say no
Seeing any task through to completion without interruption may not always seem possible, but it's the most effective way to work and the results will be gratifying. The biggest threat to good time management of your company's finances is the constant distraction of email, phone and the knock at the door. Set realistic blocks of time each week when you cannot be disturbed - and stick to them.
Want to boost your financial productivity?
- Consolidate similar tasks and do them concurrently - You'll work more productively when tackling similar tasks at the same time
- Tackle tough jobs first - You'll feel more motivated and a greater sense of accomplishment
- Don't be afraid to say no - Stick to your plan, and don't be distracted unless it's urgent and important
- Hold efficient meetings - Always work to an agenda, and only meet on financial matters when necessary
- Delegate where possible - Focus your time on the bigger financial picture