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Chapter 1: Executive Summary (Free Download)
Chapter 2: Composite Metrics
Chapter 3A: Mid-Large Size Organizations
Chapter 3B: Very Large Size Organizations
Chapter 4: Banking and Finance
Chapter 5: Energy and Utilities
Chapter 6: Healthcare Payors
Chapter 7: Healthcare Provider
Chapter 8: Insurance
Chapter 9: Life Sciences
Chapter 10: Manufacturing, Discrete
Chapter 11: Manufacturing, Process
Chapter 12: Media and Information Services
Chapter 13: Professional or Tech Services (other than IT)
Chapter 14: Retail
Chapter 15: Transportation and Logistics

INTENDED AUDIENCE

For the Chief Financial Officer (CFO) and F&A professionals, this study provides key metrics and unbiased data for benchmarking your organization’s F&A function budget and staffing levels and along with F&A key performance metrics. This study will allow you to achieve the following outcomes:

• Benchmark your F&A budget levels. Compare them with those of organizations in your industry sector.
• Manage your F&A staffing levels, including internal staffing as well as external staff, those within business process outsourcing (BPO) providers or in shared services units. A variety of staff productivity metrics are provided (see below)
• Evaluate your F&A key performance indicators (KPIs). These allow you to compare the performance of your finance & accounting organization against your industry peers.

For business process transformation (BPT) providers, this study provides valuable insights into the current F&A budget and staffing metrics, giving up-to-date insights into the market landscape. It also provides insights into the current use of external F&A personnel for various job positions.

KEY METRICS DESCRIPTIONS

Section 1: Demographics

This section provides insights into the demographics of transportation and logistics organizations in the sample. These statistics include standard measurements of organization size and the size of the F&A function. This section is not necessarily intended for benchmarking but rather to provide an overview of the sample. The remaining sections and figures or tables provide metrics that are more appropriate for benchmarking.

Section 2: Finance & Accounting Spending Metrics

This section looks at the annual budget for the F&A function, that is, how much money an organization budgets to operate its F&A operations. The section comprises the following metrics:

• Total F&A Budget as a Percentage of Revenue
• Total F&A Operational Budget as a Percentage of SG&A Budget
• Percentage of F&A Budget by Category
• Percentage of Budget for Contingent Workers for F&A Function
• Technology Budget Spent on AI
• Percentage of F&A Budget by Subfunction
• Percentage of Internal Budget by F&A Subfunction
• Percentage of Outsourcing Budget by F&A Subfunction
• Percentage of GCC F&A Budget by Subfunction

Section 3: Finance & Accounting Staffing Metrics

In this section, we provide benchmarks for finance and accounting staffing metrics, focusing on the number and allocation of personnel within the finance and accounting function. This overview includes all staffing within the finance and accounting department, regardless of whether roles are fulfilled internally or through external service providers. It includes the following metrics:

• F&A Personnel as a Percentage of Overall Employees
• Total F&A Personnel per Billion Dollar Revenue
• F&A Staff by Personnel Type
• Percentage of Total F&A Personnel Performing Various F&A Subfunctions
• Percentage of Internal F&A Personnel Performing Various F&A Subfunctions
• Percentage of Internal F&A Personnel Who Are Contingent Workers
• Percentage of GCC F&A Personnel Subfunction
• Percentage of Total F&A Personnel by Function

Section 4: Finance & Accounting AI Impact

In this section, we provide benchmarks to evaluate the impact AI has had and is anticipated to have on finance and accounting. These levels are described using the following metrics:

• Impact of AI on Internal, Outsourced, and GCC F&A Personnel
• Projected Impact of AI on Internal, Outsourced, and GCC F&A Personnel
• Impact of AI on Internal, Outsourced, and GCC F&A Personnel Performing Various F&A Subfunctions
• Projected Impact of AI on Internal, Outsourced, and GCC F&A Personnel Performing Various F&A Subfunctions

Section 5: Finance & Accounting Process Performance Metrics

Measuring the efficiency and effectiveness of a finance and accounting (F&A) function requires a comprehensive set of performance indicators. This section presents key metrics to assess both overall F&A operations and specific subfunctions. These are:

• Annual Number of Purchase Orders Created per Billion Dollar Revenue
• Percentage of Invoices Without Purchase Order as a Percentage of Total A/P Invoices
• Number of Legal Entities per Billion Dollar Revenue
• Annual Number of Journal Entries per Billion Dollar Revenue
• Accounts Payable (A/P) Invoices per Billion Dollar Revenue
• Invoices Without Purchase Order per Billion Dollar Revenue
• Customer Invoices per Billion Dollar Revenue
• Days Payable Outstanding (DPO)
• Days Sales Outstanding (DSO)
• Travel and Entertainment (T&E) Payments per Employee
• Cost per Accounts Payable Invoice Processed
• Cost per Invoice Issued
• Purchase Orders Automated
• Percentage of Invoices Generated Electronically
• Accounts Payable (A/P) Invoices Processed Automatically
• Invoices Without Purchase Orders Processed Automatically
• Customer Invoices Issued Automatically
• Accounts Receivable (A/R) Beyond 60 Days as a Percentage of Overall Purchase Orders
• Percentage of Journal Entries or Updates Automated
• Fixed Assets Entries or Updates Automated
• Percentage of Reconciliation Automated
• Percentage of Cash Auto-Allocated
• Percentage of Bad Debt Written Off
• Percentage of Invoices Straight-Through Processed (STP)
• Percentage of Invoices Paid on Time
• Most Important KPIs Used to Evaluate the F&A Function

Section 6: Finance & Accounting Business Trends

This section evaluates the primary business systems used to manage the F&A subprocesses. It covers the following:

• Top Primary Business Systems for ERP
• Top Primary Business Systems for FP&A
• Top Primary Business Systems for Accounts Payable (A/P)
• Top Primary Business Systems for Accounts Receivable (A/R)
• Top Primary Business Systems for General Accounting (GA)

APPENDIX

The Appendix includes common terms and definitions used in our annual survey and in this study. It also includes a detailed definition for all budget categories and staffing categories. The Appendix concludes with a brief discussion on the statistics used in this study.

• Common Terms and Definitions
• F&A Budget Categories
• How We Define F&A Job Functions
• Statistical Notes

CHAPTER DESCRIPTIONS

Chapter 1: Executive Summary (Free Download)

This chapter provides an overview of the key findings from the full study and describes the contents of the subsequent chapters. It also includes information on the study participants and the survey methodology.

• Introduction
• Key Findings
• Overview of the Study Contents

Chapter 2: Composite Business Process Metrics

This chapter provides composite metrics for all survey respondents across all sectors and organization sizes. The sample includes 293 organizations and is stratified by size and sector as described in the section on survey methodology. Respondents must have at least $500 million in annual revenue. There is no upper limit on the revenue of survey respondents.

Chapter 3A and 3B: Benchmarks by Organization Size

In these chapters, we provide a complete set of benchmarks for organizations within the specified size classification. Benchmarks for midsize and large organizations are in Chapter 3A and for very large organizations in Chapter 3B. There are 153 respondents in the midsize and large organization sample and 140 in the very large organizations sample. We define the size categories as follows:

• Midsize and large organizations have annual revenue of more than $500 million up to $5 billion.
• Very large organizations have annual revenue of $5 billion and above.

Chapter 4: Banking and Finance Sector Benchmarks

Chapter 4 provides comprehensive benchmarks for finance and accounting (F&A) staffing and spending within the banking/financial services sector. This sector encompasses a wide array of organizations, including commercial banks, investment banks, credit unions, mortgage lenders, consumer finance lenders, and other financial services providers. The 35 respondents from this sector vary in size, ranging from companies with annual sales of approximately $486 million to those exceeding $66 billion.

Chapter 5: Energy and Utilities Sector Benchmarks

Chapter 5 offers an in-depth analysis of finance and accounting (F&A) staffing and spending within the energy and utilities sector. This sector is characterized by a diverse range of organizations, including power generation companies, electric and gas utilities, water and sewage companies, and renewable energy providers. The survey sample includes 35 respondents from this sector, with annual revenues as low as $565 million to $37 billion.

Chapter 6: Healthcare Payor Sector Benchmarks

Chapter 6 provides a detailed analysis of the healthcare payor sector, focusing on benchmarks for finance and accounting (F&A) staffing and spending. The sector includes a range of organizations such as health insurance companies, managed care organizations, government programs, and other entities that manage healthcare costs. The chapter examines data from 33 respondents, revealing a substantial variation in company sizes, with annual sales ranging from approximately $588 million to over $50 billion.

Chapter 7: Healthcare Provider Sector Benchmarks

Chapter 7 provides comprehensive benchmarks for finance and accounting (F&A) staffing and spending within the healthcare provider sector. This sector includes a diverse array of organizations, such as hospitals, healthcare networks, clinics, long-term care facilities, outpatient care centers, and other healthcare service providers. The 34 respondents from this sector vary significantly in size, with annual revenues ranging from approximately $575 million to $80 billion.

Chapter 8: Insurance Sector Benchmarks

Chapter 8 provides comprehensive benchmarks for finance and accounting (F&A) staffing and spending within the insurance sector. This sector covers a wide spectrum of organizations, including life insurance, health insurance, property and casualty insurance, reinsurance providers, and specialized insurance carriers. The 15 respondents from this sector represent firms of varying size, ranging from companies with annual sales of $842 million to those exceeding $37 billion.

Chapter 9: Life Sciences Sector Benchmarks

Chapter 9 offers a comprehensive examination of the life sciences sector, presenting benchmarks for finance and accounting (F&A) staffing and spending that reflect the industry’s unique characteristics. The sector includes a diverse array of organizations, such as biotechnology firms, pharmaceutical companies, medical device companies, and research institutions. The 34 survey respondents vary in size, with organizations reporting annual revenues ranging from approximately $543 million to over $17 billion, highlighting the sector’s broad economic impact.

Chapter 10: Discrete Manufacturing Sector Benchmarks

Chapter 10 provides comprehensive benchmarks for finance and accounting (F&A) staffing and spending within the discrete manufacturing industry. This sector encompasses a wide array of organizations, including automotive manufacturers, aerospace and defense companies, electronics producers, machinery manufacturers, and other producers of distinct products. The 25 respondents from this sector vary in size, ranging from companies with annual sales of approximately $580 million to $65 billion.

Chapter 11: Process Manufacturing Sector Benchmarks

Chapter 11 provides comprehensive benchmarks for finance and accounting (F&A) staffing and spending within the process manufacturing industry. This sector encompasses a wide array of organizations, including chemical producers, food and beverage manufacturers, pharmaceutical companies, and oil and gas refineries. The 21 respondents from this sector vary in size, with annual sales ranging from approximately $1 billion to over $19 billion.

Chapter 12: Media and Information Sector Benchmarks

Chapter 12 provides comprehensive benchmarks for finance and accounting (F&A) staffing and spending within the media and information services sector. This sector includes a diverse set of organizations such as publishing houses, broadcasting companies, digital media platforms, advertising agencies, market research firms, and information service providers. The 15 respondents from this sector represent companies ranging from over $1 billion to global enterprises with $29 billion in annual sales.

Chapter 13: Professional or Tech Services (other than IT) Sector Benchmarks

Chapter 13 provides comprehensive benchmarks for finance and accounting (F&A) staffing and spending within the professional or technical services sector, excluding IT services. This sector covers consulting firms, engineering services, legal services, accounting and audit firms, architectural services, and other specialized professional practices. The 15 respondents from this sector vary in size, ranging from firms with annual sales of $627 million to those exceeding $6 billion.

Chapter 14: Retail Sector Benchmarks

Chapter 14 provides comprehensive benchmarks for finance and accounting (F&A) staffing and spending within the retail sector. This sector includes grocery chains, department stores, specialty retailers, e-commerce platforms, and mass merchandise companies. The 15 respondents from this sector represent organizations of varying size, ranging from firms with $565 million to global enterprises exceeding $17 billion in annual sales.

Chapter 15: Transportation and Logistics Sector Benchmarks

Chapter 15 provides comprehensive benchmarks for finance and accounting (F&A) staffing and spending within the transportation and logistics sector. This sector includes freight and shipping companies, airlines, rail operators, trucking firms, warehousing providers, and third-party logistics (3PL) service providers. The 15 respondents from this sector range in size from organizations with $670 million to multinational enterprises with $88 billion in annual sales.

FINANCE & ACCOUNTING BENCHMARKING

Avasant Research not only publishes business process metrics. We also provide custom benchmarking services for clients.

Looking for expert assistance in evaluating your F&A budgets, staffing, and key performance metrics? Our custom benchmarking consulting service provides an in-depth assessment of your F&A key metrics against our database of peer organizations.

Contact us for pricing and a free sample of the benchmarking deliverable.