Most small business owners know admin takes time. Few know what it costs in dollars. The number is usually bigger than expected, and it's the easiest way to decide which tasks are worth fixing first.
The formula
Weekly admin cost = people doing admin × hours each per week × hourly cost
Then multiply by 52 for the year, or by 52 ÷ 12 (about 4.33) for a month. For hourly cost, use wages plus employer costs like CPP and EI contributions and any benefits. For the owner's time, use what an hour of your time is worth to the business.
Run your own numbers
Cutting that admin by 30% would free up about $0 a year.
This calculator is also available on its own page: admin cost calculator.
Three Calgary examples
These are illustrative, built from typical setups, not specific clients.
1. An 8-person plumbing and heating company
The office manager spends about 20 hours a week on quotes, scheduling, invoicing, and chasing payments. The owner spends 8 hours on quotes and paperwork in the evening. Six technicians each spend about an hour a week on job notes and receipts.
| Admin hours per week | 34 |
| Hourly cost (blended) | $40 |
| Weekly cost | $1,360 |
| Yearly cost | $70,720 |
2. A 4-person bookkeeping firm
Each bookkeeper spends about 6 hours a week on pure data entry: keying in statements and receipts, and chasing clients for missing documents.
| Admin hours per week | 24 |
| Hourly cost | $45 |
| Weekly cost | $1,080 |
| Yearly cost | $56,160 |
3. A single-location restaurant
The manager spends 6 hours a week on schedules and inventory counts. The owner spends 5 hours on supplier invoices and bookkeeping.
| Admin hours per week | 11 |
| Hourly cost | $35 |
| Weekly cost | $385 |
| Yearly cost | $20,020 |
What the number doesn't show
- Slower cash flow. Invoices that go out late get paid late.
- Errors. Retyped numbers get mistyped, and fixing them takes more admin.
- Owner burnout. Evening paperwork is time not spent selling, resting, or with family.
- Missed money. Lost receipts mean unclaimed GST credits and inaccurate job costs.
Which tasks to fix first
Don't try to fix everything. List each admin task with its weekly hours, then sort by hours. The top two or three usually account for most of the cost. For each, ask:
- Is there software that already does this? (Usually yes.)
- Do we already own it but never set it up properly? (Surprisingly often.)
- If nothing fits, is the task repetitive enough to justify a custom tool?
For the most common fixes by task, see small business automation in Calgary: where to start. If receipts are on your list, compare receipt-scanning apps for Canadian businesses.
Frequently asked questions
How do I calculate the cost of admin work?
Multiply the number of people doing admin by their weekly admin hours and their hourly cost, then multiply by 52 for a yearly figure.
What hourly cost should I use for employees?
Use the hourly wage plus employer costs such as CPP and EI contributions and any benefits.
How much admin time is normal?
It varies widely by industry and size. Rather than comparing to an average, find your own top two or three tasks by hours and fix those first.