Better finance functions needed to catch next wave of growth
UK companies need to overhaul their finance functions or suffer competitive disadvantage as the economy recovers and growth opportunities return.
The warning comes from PricewaterhouseCoopers (PwC), whose latest Finance Effectiveness Benchmark study reveals that less than half of financial professionals believe their company’s financial forecasts are reliable.
The annual review of over 200 companies’ finance functions found that middling finance functions were 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 report also notes the need for many financial professionals to change their mindset round what they do.
Brian Furness, partner at PwC, says: “We are seeing finance as a discipline change from a technical challenge to an adaptive challenge.
“Businesses need to facilitate this transformation of skills and talent by building effective teams that will support them through recovery and into growth.”