A new benchmarking study of financial function practices has been co-developed by Financial Executives International (FEI) and Robert Half Management Resources to assist executives in evaluating their readiness for further changes in an evolving business landscape. The survey was conducted by Financial Executives Research Foundation (FERF), the research arm of FEI.
The study reveals how public and private firms both big and small are currently managing their finance departments in six areas: staffing, accounting operations, financial systems, sourcing, internal controls, and compliance. Key survey results include:
· The average cost of internal staff, as a percentage of a company's total revenue in the finance and accounting function, is 2.63 percent (cost is defined as base salary, benefits, and bonus).
· Nearly half (48.12 percent) of survey respondents reported that their payroll function is outsourced.
· Eighty percent of respondents expect the compliance burden to increase over time.
"Having access to information about how other firms manage their finance functions can help businesses identify opportunities for improvement and create best practices that suit their particular circumstances", said Marie Hollein, president and CEO of FEI. "The findings of our survey offer a snapshot of what companies are doing in a variety of areas and provide a starting point for businesses in planning for both the short and long term."
"One of the key lessons of this recession is the need for flexibility in managing staffing resources", said Paul McDonald, executive director of Robert Half Management Resources. "Having benchmarks with which to compare current staffing models can help accounting and finance executives gain a bigger-picture view of their options in sizing their departmental workforces, now and as conditions improve."
About the Survey
Benchmarking the Finance Function examines the results of a new benchmarking survey of staffing, compliance, internal control, and other practices within the finance function and was conducted by Financial Executives Research Foundation (FERF). Results and analysis in the report are based on data collected using a 52-question online survey of more than 200 financial executives from both public and private companies. You can download the complete report.