Finance Function Cost As A Percentage Of Revenue ~ Indeed recently has been hunted by consumers around us, perhaps one of you. Individuals now are accustomed to using the net in gadgets to view image and video information for inspiration, and according to the name of this post I will talk about about Finance Function Cost As A Percentage Of Revenue. As organizations grow larger the relative cost of finance as a percentage of revenue should decline. That of well run companies is somewhere between 0 6 and 0 7. In the services industry for example the top performing organizations spend 0 57 of revenue on the finance function while the bottom performers spend a whopping 3 96. The finance function involves financial strategy and planning investment management tax funding and treasury profitability and cost management revenue cycle accounts payable and expense reimbursements payroll general accounting and reporting fixed asset management and internal audit. Finance expense as a percentage of total revenue measures spending within the finance function relative to the company s total revenue. Yet gauged in terms of total cost of the finance function as a percentage of revenue the first apqc metric of the month an ongoing cfo feature many organizations are sadly still wasting hundreds of thousands or even millions of revenue dollars on inefficient finance operations figure 1. In the second chart we see that the difference in total cost to perform the finance function per finance function fte is even more striking. However we see many finance functions trailing in their adoption of emerging technologies which could have a much greater impact in closing the. Download a report with benchmark data a definition and details for tracking this metric. This measure calculates the total cost to perform the finance function as a percentage of revenue. The cost for bottom performing companies has remained relatively stable as well shrinking from 2 in 2015 to 1 6 in 2019. Out of 328 finance executives at large companies who completed apqc s open standards benchmarking assessment as of march 1 2016 the best performing 25 of companies spends 0 57 of revenue or less to run their finance operations including the biggie functions such as accounts payable accounts receivable general accounting and performance management. This data reflects the relative cost profiles of 543 organizations that completed an apqc. The basis to define that cost is the percentage of the cost of the finance function compared to the total revenues of the organisation. In fact apqc s data shows that for this measure size matters. The difference between the top performing firms and the bottom performers in terms of percentage of revenue spent on the finance function is surprisingly large. They are working to improve business results by investing in commercial insight and spending less time on transactional work. Top performing companies with more than 1 billion in revenue spend only 0 4 of revenue on finance while top performing smaller organizations with less than 1 billion in. The average is around 1 4. Out of a total of 755 firms bottom quartile performers spend at least 12 67 per 1 000 in revenue on people to perform the finance function while the top quartile performers spend just 3 66 or less.
However we see many finance functions trailing in their adoption of emerging technologies which could have a much greater impact in closing the. The cost for bottom performing companies has remained relatively stable as well shrinking from 2 in 2015 to 1 6 in 2019. This data reflects the relative cost profiles of 543 organizations that completed an apqc. If you are searching for Finance Function Cost As A Percentage Of Revenue you've reached the ideal location. We have 12 graphics about finance function cost as a percentage of revenue including images, pictures, photos, wallpapers, and much more. In these webpage, we additionally have number of graphics out there. Such as png, jpg, animated gifs, pic art, symbol, black and white, transparent, etc.
However we see many finance functions trailing in their adoption of emerging technologies which could have a much greater impact in closing the.
Yet gauged in terms of total cost of the finance function as a percentage of revenue the first apqc metric of the month an ongoing cfo feature many organizations are sadly still wasting hundreds of thousands or even millions of revenue dollars on inefficient finance operations figure 1. The finance function involves financial strategy and planning investment management tax funding and treasury profitability and cost management revenue cycle accounts payable and expense reimbursements payroll general accounting and reporting fixed asset management and internal audit. Yet gauged in terms of total cost of the finance function as a percentage of revenue the first apqc metric of the month an ongoing cfo feature many organizations are sadly still wasting hundreds of thousands or even millions of revenue dollars on inefficient finance operations figure 1. Out of 328 finance executives at large companies who completed apqc s open standards benchmarking assessment as of march 1 2016 the best performing 25 of companies spends 0 57 of revenue or less to run their finance operations including the biggie functions such as accounts payable accounts receivable general accounting and performance management.