Finance Boosting Both Efficiency and Strategic Contribution

Benchmarking study provides fresh evidence that top finance teams are becoming more effective partners to the business.

In its recent report "Unlocking Potential: Finance effectiveness benchmark study 2013," PwC benchmarked the finance functions of more than 200 companies based on their performance in everything from the quality of their budgets and financial forecasts to the efficiency of their transactional processes to their effectiveness in treasury, risk management, tax compliance, and audit. Then it grouped the finance teams into quartiles and compared them across a variety of characteristics.110613_PwC study_Figure 1-v3

In terms of efficiency, the survey found that the cost of finance for top-quartile businesses is 0.56 percent of corporate revenue. For the median company, that number is 0.93 percent—so the proportion of corporate revenue that goes toward finance costs is nearly two-thirds higher for the typical finance function than for top teams.

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