UK companies need to overhaul their finance functions or suffer competitive disadvantage as the economy recovers and growth opportunities return, according to PricewaterhouseCoopers (PwC’s) latest Finance Effectiveness Benchmark study.
The annual review of over 200 companies’ finance functions shows how less than half of financial professionals believe their company’s financial forecasts are reliable.
Furthermore, middling finance functions are running at 60% higher cost to businesses than top performers, with the best performing companies often employing outsourcing and shared service centres to drive down costs.
The cost of finance functions remains highest within the financial services industry, running at around 1.48% of revenues.
The report also notes the need for many financial professionals to change their mindset around what they do.
Brian Furness, partner at PwC, explains: “Moving into new markets, disruptive technologies and the demands of a new generation of digital customers are just some of the mega-trends informing and transforming businesses today.
“Finance needs to advise and assist decision makers, and to participate in those decisions.”