The hidden costs of a customized report.

Slow processes, manual work, and rigid systems are not only frustrating and demotivating for financial professionals, but they also increase hidden reporting costs, slow down decision-making, and hinder business growth.

The good news is that these costs can be managed and significantly reduced with the right practices and tools. In this blog, we will explore where these hidden costs originate and how to keep them under control.

1. Tool Training

Whether you create reports in Excel, accounting software, or BI tools, implementing a new system always requires some time and learning. However, the biggest cost is not the software’s monthly fee or implementation project but the hours spent on training, ensuring that the accounting firm's team and employees can use it effectively to produce high-quality reports for their clients.

Tip

• Choose user-friendly tools that allow you to run reports with a click.

Cost example: If two employees spend a total of 5 hours per week learning the software, this adds up to 40 hours per month. If the hourly cost per employee is € 80, the training cost is 40 x € 80 = € 3,200 per month.

2. Creating Customized Reports

Building custom reports can be time-consuming, especially if each report is manually created from scratch based on client needs. However, this is not the only way to operate, efficient methods can significantly speed up reporting.

Tips

• Use ready-to-go reports and templates.

• Choose automated BI and reporting tools that cut 99% of the manual work.

• Discuss with the client to define exactly what type of report best meets their needs.

Cost example: If creating one custom report takes 10 hours and 5 reports are made per month, an employee spends 50 hours on this task. At an hourly rate of € 80, the cost is 50 x € 80 = € 4,000 per month.

3. Client Requests & Modifications

Customer service and report customization are essential for high-quality financial advisory services, but their management can either enhance or slow down operations. It’s good to keep in mind, that 80% of client needs are recurring. This means that a standardized reporting model can cover most requirements, and only a small portion requires customization.

Tips

• Offer a free trial to ensure the report meets your client’s needs.

• Document client requests clearly to speed up report updates.

• Use reporting templates that are already in use by other clients.

Cost example: If a client requests changes to a report once a month and an employee spends 3 hours relearning the system, this results in 3 x € 80 = € 240 per month.

4. Fixing Errors

If you only use a report once a month, remembering how to use complex software can take time and increase the risk of errors. This leads to extra work and, in the worst case, weakens client trust.

Tips

• Use ready-made report templates.

• Ensure that every report is reviewed before sending.
  

Cost example: If fixing errors takes 6 hours per month, the cost is 6 x € 80 = € 480 per month.

5. Stress & Workload

When reporting processes are inefficient, the workload for financial professionals increases. Difficult tools cause frustration and lower motivation. In the worst case, this can lead to stress, sick leave, and decreased job satisfaction.

Tips:

• Automate reporting, allowing employees more time for expert work.

• Ensure the team receives adequate training

  and support for new systems.

• Establish clear priorities and workflows to prevent excessive workload and stress.

Cost example: If an employee takes an average of 2 days off per month due to workload stress, this equals 16 hours x € 80 = € 1,280 per month.

Summary

When all hidden costs are added up, they can reach significant amounts. In this example:

• Software training (40 hours): € 3,200

• Custom report creation (50 hours): € 4,000

• Fixing errors (6 hours): € 480

• Client service and modifications (3 hours): € 240

• Stress-related absences (16 hours): €1, 280

Total monthly cost € 9,200 and total yearly cost € 110,400.

These hidden costs can be significantly reduced by utilizing effortless riskrate BI and reporting automation, eliminating unproductive work, and training your team effectively. When reporting is actively developed, your accounting firm can provide higher-quality services effortlessly, without stress and the need for new hires.

How to cut 99% of the hidden hours spend on reporting?

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