How much does it cost to run the finance function? How much should it cost? And what best practices can companies implement to bring those costs down without reducing the quality of financial oversight and business support?

Answering these questions is one goal of the extensive benchmarking research compiled annually by The Hackett Group. According to the firm’s benchmark reports, the cost of finance has been falling steadily for years. Even so, this year’s result is notable: For the first time, the finance function in the median company cost less than 1 percent of corporate revenue. That’s a 34 percent reduction from two decades ago. (See Figure 1, below.)

Technology has obviously played a key role in improving efficiency, but it hasn’t been the only weapon in the finance arsenal. Treasury & Risk sat down with Hackett senior research director Lynne Schneider to uncover causes of the trend.


Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including and

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2023 ALM Global, LLC. All Rights Reserved.