As an advisor, your typical day consists of meeting with clients, managing your portfolio, researching investments, and focusing on continuing education. Unfortunately, to keep your firm running smoothly, you’re likely bogged down with plenty of back-office tasks. Have you ever felt like you’re spending too much time on administrative tasks and not enough time on revenue-generating activities that you love? You’re not alone.
A recent survey study by Cerulli Associates found that financial advisors and RIAs spend an average of 22% of their work hours on administrative tasks, 50% on client-related activities, and less than 20% of their time on making investment decisions. While back-office tasks and keeping clients updated are important, they take away your time and focus on what you do best – making strategic decisions which impact clients’ financial outcomes. So how can you maximize your work hours and get back to the core focus of your business?
In this post, we’ll overview the most common mistakes advisors make in managing their time and resources. Then, we’ll provide alternative strategies that will help you focus your time and grow your business.
Common Mistake #1: Delegating to the Wrong Person
Many time-management articles stress the importance of delegation. And while that is important, it is not always a solution to minimize administrative tasks. According to another Cerulli survey study, 52% of advisors feel that ineffective delegation is the main contribution to their long work hours. When you hire the wrong person to handle your paperwork, it may take several days or weeks before you catch up to the problem. You may often end up micromanaging them or doing the task yourself, which will take away even more time from your day. Instead of taking the risk of hiring the wrong person, consider really more heavily on technology to automate your back-office tasks.
Common Mistake #2: Not Automating Recurring Tasks
Many advisors automate their client billing processes but don’t implement the same level of automation for other administrative tasks such as performance reporting or compliance. Fortunately, modern reporting and performance management technology not only helps reduce manual time spent preparing for client meetings–it also comes with a high degree of customization to meet your firm’s unique needs. Automating your back-office tasks will save you time and reduce the chances of human error.
Common Mistake #3: Relying on Paper
While we have come a long way since relying on paper, yet many advisors still use paper-based processes to communicate with their clients. Did you know you can reduce client-related activities if you switch to digital? Digital communication is not only more efficient, but it is also more secure. Customized client portals provide clients with 24/7 access to their account information and documents.
Common Mistake #4: Following Outdated Processes
Many of those in the financial industry still rely on outdated processes to get work done. While it may be easier to stick with the status quo, these inefficient processes will add more time to your already long work hours. For example, if you are still using Excel spreadsheets instead of portfolio management software, you probably spend too much time inputting data and not enough time analyzing it.
When you use technology to automate your processes, you can eliminate the need for manual data entry and get more accurate information in real-time. This will free up your time to focus on researching investments and aligning with the right clients.
Common Mistake #5: Using a System Not Dedicated to Financial Advisors
If you are not using a system dedicated to financial advisors, you may have to do more administrative work, including tasks like inputting client data, tracking changes in the market, and generating reports. While this might not seem like a big deal initially, it can eventually take up a lot of your time and energy. Additionally, it can be difficult to keep track of everything if you’re not using a dedicated system. This problem can lead to errors and omissions, which can seriously affect your clients.
Another problem with general billing software is that there are no tax codes and rate tables specific to financial advisors. Although general software is lower in cost, it can result in inaccurate billing, which can cause legal problems down the line. When you use a billing system dedicated to financial advisors, you can be confident that you are using the most up-to-date software with the latest tax codes and rate tables. In the end, using a system dedicated to financial advisors can save you time and possible legal hassle.
Common Mistake #6: Not Learning How the Software Works
When you invest in new technology, it is important that you take the time to learn how to use it. Many financial advisors and RIAs make the mistake of using the only main features of the program. According to research studies, approximately 69% of advisors admit that they should learn how to use technology more efficiently. With some extra time and effort, you’ll find that your analysis can be done more quickly and effectively with the help of other features within your software.
How BridgeFT Can Help You Minimize Administrative Tasks
If you’re looking for a way to minimize the amount of time you spend on administrative tasks, BridgeFT offers a solution. Our Atlas platform offers a variety of features that are designed to save you time, including:
- Automated client onboarding
- Proactive client insights
- Unlimited custom reports
- Online complaint fee billing
When it comes to your business, your time is valuable – stop wasting it on back-office tasks. With BridgeFT, you can minimize your time on these tasks to focus on what’s important – providing quality advice and service to your clients. Schedule a demo of Atlas today to learn more.