The Finance and Accounting (F&A) function has evolved into a multidimensional discipline, encompassing financial planning and analysis (FP&A), working capital optimization, accounts receivable and payable management, and digital finance transformation. These elements are critical for enabling organizations to navigate today’s volatile market conditions and remain competitive. As organizations embrace digital transformation, there is a noticeable shift in F&A investment priorities. But where are these investments being directed, and how much is being allocated? To answer these questions, we proudly present our annual F&A Budgets, Staffing, and Process Metrics 2024/2025 report. This comprehensive report delves into the financial and staffing trends shaping F&A today, offering valuable benchmarks for companies seeking to optimize their F&A strategies.
As shown in the figure below from the executive summary (available to download for free), banking and financial services companies are allocating the highest percentage of their revenue toward F&A. This aligns with the expectation that industries governed by strict regulations and compliance standards, like banking and finance, would naturally command larger F&A budgets. Similarly, healthcare payors continue to allocate significant F&A resources toward auditing and compliance needs. These findings highlight that these sectors consistently prioritize F&A investments more than healthcare providers or manufacturing industries, underscoring their focus on operational precision and regulatory adherence.
The enterprise focus in Finance and Accounting (F&A) has shifted toward adopting digital technologies like generative AI, automation, predictive analytics, and robotic process automation (RPA) to revolutionize F&A operations. These technologies streamline routine and repetitive tasks such as invoice matching, cash applications, and reconciliation, enabling finance professionals to concentrate on high-value activities like financial planning, risk assessment, and performance management. Moreover, digital technologies provide real-time financial insights, empowering organizations to adapt quickly to market fluctuations, improve working capital management, and make data-driven decisions with enhanced accuracy and efficiency.
Staffing remains a crucial factor in achieving F&A success. Organizations must strike a balance between retaining skilled finance professionals and leveraging automation or outsourcing to improve operational efficiency. Benchmarks for F&A staffing provide insights into optimal workforce levels based on organizational size, industry, and F&A budget allocations. Key metrics include the ratio of finance staff to total employees, the split of F&A resources across sub-processes, and productivity measures such as invoices processed per employee annually. These metrics are invaluable in helping companies allocate resources effectively and enhance workforce productivity.
Understanding spending and staffing patterns in F&A is essential for optimizing operational strategies and ensuring alignment with industry best practices. Our findings offer benchmarks across key areas, including F&A expenditures, staffing levels, and process efficiency, enabling organizations to identify gaps and refine their strategies. By comparing performance against these benchmarks, finance leaders can unlock process improvements, streamline cash flow, and elevate the strategic value of their F&A functions.
“Finance and Accounting is no longer just about managing numbers—it’s about enabling strategic growth and resilience. Organizations that lead in this space harness data, embrace innovation, and ensure agility to drive sustainable value across the enterprise,” said Shobhit Patnaik, partner at Avasant.
Our F&A Budgets, Staffing, and Process Metrics 2024/2025 study is based on a comprehensive survey of 147 organizations in North America and Europe regarding their F&A spending and staffing plans for 2024/2025. The study offers benchmarks for midsize, large, and very large organizations across seven sectors. The free executive summary describes the study’s metrics, design, demographics, and methodology.
This Research Byte is a brief overview of the findings in our report, F&A Budgets, Staffing, and Process Metrics 2024/2025. The full 10-chapter report is available as an add-on to existing Avasant Research clients. Individual chapters may be purchased directly from our website (click for pricing).