Automation
Why automate your business: money, time and — nerves
Savings in money and time are easy to calculate. The third item appears in no spreadsheet, and business owners mention it first: the feeling that you have forgotten something stops.
When a company considers automation, the calculation usually narrows to one question: what does it cost and what will I save. That is a fair question, but an incomplete one — it covers two of the three things that actually change.
This article goes through all three, in order of how visible they are: money, time, and the third thing that fits in no spreadsheet.
Item one: money that never shows up on an invoice
Manual work around the job does not come with an invoice, so it looks free. It is paid for anyway — just through other lines.
Double entry is the most expensive. Every time the same piece of data is copied from one place to another you pay for the time it takes and the risk of error inside it. A mistake in a quantity or a measurement does not cost what a minute of typing costs — it costs what its consequences cost.
Next comes work that is not billed because it cannot be proven. Extra work carried out on site but recorded nowhere does not exist on the invoice. Companies that introduce documentation of completed work usually notice their invoices going up before they notice their costs going down.
And third: a new hire in the office. That is the most expensive response to growing admin, and the most common one. With one of our clients that was exactly the opening question — and the answer in the end was that the person was not needed, because the work they would have done was not work but retyping.
Item two: time, and the most expensive kind
Admin hours are not spent evenly. They pile up at month end, in the evenings and at weekends — and they are usually spent by the owner or the foreman, the most expensive people in the company, at the point when they are most tired.
That is exactly where settlement errors are born, because the adding up happens at eleven at night under payroll deadline. Automation does not only save hours here, it moves them: the system has been counting all month, so month end becomes a five-minute review instead of an evening with three notebooks.
The second large item is the time spent on the question “where are we”. Calls to the site, asking what has been done, hunting for a document in folders — all minutes nobody counts, which add up to an hour a day for anyone who leads people.
The third is the waiting time between steps. The job is finished on Tuesday, the paperwork reaches the office on Friday, the invoice goes out next week. When documents come out of the same entry, that gap disappears — and that is often the single biggest effect on cash flow.
Item three: nerves
This is the part that appears in no quote, and the one business owners mention first when you ask them a year later what changed.
The feeling that you have forgotten something stops. When everything lives in your head and in messages, you carry a constant background tension — not that something specific is wrong, but that something might be wrong and you would not know. Once there is one place where the state of play is visible, that tension switches off.
Arguments about hours disappear. “I was here from seven” — “you were not” is a conversation with no winner: either you pay for hours you did not get, or the worker leaves convinced he was short-changed. When the record is created at the moment of arrival, there is nothing to argue about.
The fear of the question that comes later also goes. When a customer or an inspector asks what was done and when, the answer is a report in a minute instead of a reconstruction from memory.
And finally, the time that is not working time comes back. Month end stops being an event in the family.
What should NOT be automated
The decision should not be automated. The system should prepare the document, gather the data and propose the step — and the person accountable for it should look and confirm. In every rollout of ours, where approval is needed there is an approval, and that is precisely why owners let the system work.
A process that is bad to begin with should not be automated. If a step is unnecessary, software that does it faster just produces unnecessary work faster. That is why we always walk the workflow first and build second — never the other way round.
And it should not all be introduced at once. A company that switches on fifteen modules in the first month usually uses three and carries the habits for fifteen.
How to measure this before you invest
There is a simple exercise that needs no tool. For one week, note every time you entered the same piece of data a second time, and every time you called someone to ask where we are. Just a tick on paper.
At the end of the week you have two numbers. The first says how often data passes through your hands unnecessarily; the second, how much time you spend maintaining an overview that ought to exist on its own.
Those two numbers are the whole calculation. Everything else — which modules, in what order, how long a rollout takes — comes afterwards, and is discussed once we have seen how the work actually runs at your place.
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Nikola Cerić
Founder & CEO, Manage IT
More than 10 years of software development experience — in his own company and in major IT companies across the Balkans.