Busy work is activity that fills the day without moving the business toward its goals. Productive work produces a result the business needs, such as revenue, cash collected, a decision made, or a risk removed. In the finance side of a small business, the difference shows up in whether the owner ends the month with numbers they can act on.
How can you tell busy work from productive work?
Ask one question about any task. If this were never done, what would the business lose? If the honest answer is nothing, the task is busy work.
| Busy work | Productive work |
|---|---|
| Re-entering the same data in two systems | Connecting the systems once so data flows automatically |
| Checking the bank balance several times a day | Reviewing a weekly cash forecast |
| Sorting receipts by hand at year end | Categorizing transactions every week |
| Building a report nobody reads | Reviewing five key numbers every month |
| Answering every email as it arrives | Blocking time to follow up on unpaid invoices |
| Fixing the same bookkeeping error each month | Correcting the cause of the error |
Where does busy work hide in a small business’s finances?
- Manual data entry. Typing in transactions that a bank feed could import.
- Spreadsheets that duplicate the accounting system. Two versions of the truth that must be kept in agreement.
- Year-end cleanup. A full year of corrections squeezed into a few weeks before the tax deadline.
- Reports without decisions. Pages of numbers that never lead to an action.
Which financial tasks deserve an owner’s time?
- Reading the monthly Profit and Loss statement and Balance Sheet
- Reviewing who owes the business money and following up
- Looking at the cash forecast for the next 13 weeks
- Deciding on prices, hires, and major purchases with the numbers in hand
- Meeting with an advisor about what the results mean
How do you reduce busy work?
- Automate. Turn on bank feeds and rules for recurring transactions.
- Batch. Handle similar tasks together at a set time each week.
- Delegate. Hand recording and reconciling to a bookkeeper.
- Stop. Drop reports and steps that no one uses.
An owner who spends five hours a week on bookkeeping gives up more than 250 hours a year. Those hours are usually worth more when spent on customers, staff, and decisions.
Common questions
Busy work keeps you occupied without producing a result the business needs. Productive work moves the business toward a goal, such as more revenue, faster collections, or a better decision.
An owner can, but the hours usually cost more than a bookkeeper would. Owners add the most value by reading the results and making decisions.
Reviewing the financial statements, approving large payments, and making decisions about pricing, hiring, and borrowing should stay with the owner.
Have a question about your own numbers?
30 minutes, no cost, and you will speak with Jackie directly.
Prefer to write? Send a message or call (702) 704-5816.