Robert Half

New Research Examines Trends and Standards in Finance and Accounting Functions


Sponsored by Robert Half

Benchmarking the Accounting & Finance Function: 2014 provides financial executives a valuable guide for developing standards for their departments.

Benchmarking business processes is one of the best ways for companies to compare their own operations with peer companies and gain insights for process improvements.

Robert Half and Financial Executives Research Foundation, an affiliate of Financial Executives International, have undertaken a detailed benchmark survey based on input from nearly 1,600 finance and accounting executives at public and private companies in the United States and Canada. The result is Benchmarking the Accounting & Finance Function: 2014, which provides financial executives a valuable guide for developing standards for their departments.

The report presents findings in six key areas:

  • Workforce management
  • Accounting operations
  • Financial systems
  • Sourcing
  • Internal controls
  • Compliance
Research highlights include the following:
  • At U.S. companies, the median cost of internal financial staff as a percentage of revenue increased this year to 2 percent of revenues, up from 1.4 percent last year; however, it fell at companies with revenues of less than $100 million.
  • Asked about allocation of staff, respondents overall indicated that general accounting, accounts payable and accounts receivable accounted for the highest percentage of their human resources, at 21 percent, 15 percent and 11 percent, respectively.
  • The average percentage of temporary or project staff in U.S. finance and accounting departments is 8, compared to 5 in Canada.
  • The increasing complexity of doing business has led to a growing number of general ledger accounts. Nearly two out of every five (38 percent) U.S. executives surveyed said they have more than 500 general ledger accounts, and 9 percent said they have more than 3,000. In addition, more than half (59 percent) of U.S. companies rely on manual reconciliation of accounts, which places a strain on staff but also presents an opportunity for firms to streamline the close and use resources more efficiently.
  • More than three-quarters (78 percent) of U.S. respondents and 90 percent in Canada said they use an ERP system as their primary financial system to create efficiencies and contain costs. Microsoft Excel also continues to be widely used as a budgeting and planning tool.
  • Payroll and tax remain the two leading outsourced functions in both the United States and Canada.
  • The number of key internal controls is on the rise, particularly at the largest U.S. companies, placing a growing burden on finance departments. This year, 21 percent of companies with revenues of $5 billion and higher reported managing between 1,001 and 2,500 key controls.
  • Evolving regulations and the legacy of the global financial crisis continue to weigh on companies and their finance functions. Nearly all respondents (99 percent in the United States and 96 percent in Canada) project the cost of compliance to increase or remain steady, with 48 percent and 41 percent, respectively, expecting it to rise.
This type of benchmarking data can help financial executives gauge whether their business processes and resources are adequate and effective compared to other organizations. Benchmarks can also point the way to best practices that can improve your department’s operations in areas such as staffing, internal controls and compliance.

For more detailed data on how your department measures up, download a copy of Benchmarking the Accounting & Finance Function: 2014.

 

Founded in 1948, Menlo Park, Calif.-based Robert Half, the world's first and largest specialized staffing firm, is a recognized leader in professional consulting and staffing services. Find more information at roberthalf.com.