Recently, several in-depth articles that review shared services center (SSC) performance with headquarter (HQ) and business unit (BU) performance were updated with new benchmarking data. According to APQC’s Open Standard Benchmarking in accounts receivable, accounts payable, payroll, and general accounting and reporting, SSCs outperform HQ and BU locations.
SSCs operate with lower costs, fewer staff, and higher productivity levels than finance functions located at HQ or BU locations. Metric Highlights for Financial Processing at Shared Services Centers (Collection) features metrics for the various financial processing functions, highlighting the cost reductions and increased efficiencies in SSCs compared to the same financial functions performed at HQ or BU locations.
Accounts Receivable Shared Services: Do More While Reducing Costs provides benchmarks such as:
- total cost to process accounts receivable per customer receipt,
- cycle time in days to resolve adjustments,
number of full-time equivalent (FTE) employees to process accounts receivable per $1 billion revenue,
- percentage of receipts received electronically or automatically.
Shining Services in Accounts Payable Shared Services Centers: Lower Costs, Faster Processing, and Fewer People provides benchmarks such as:
- total cost to process accounts payable per $1,000 purchases,
- number of invoices processed per FTE,
- number of FTEs to process accounts payable per $1 billion purchases,
- cycle time in days from receipt of invoice until payment is transmitted, and
- utilization of discounts.
Processing Payroll Using Shared Services provides benchmarks such as:
- total cost to process payroll per $1,000 revenue,
- number of FTEs to process payroll taxes per $1 billion revenue, and
- number of payroll disbursements processed per FTE.
Shared Services Centers Do It Better: Processing General Accounting and Reporting provides benchmarks such as:
- total cost to perform general accounting per $1,000 revenue,
cycle time in days between completion of annual consolidation financial statements and the release of
- number of FTEs to perform financial reporting per $1 billion revenue, and
- percentage of manual journal entries.
Not an APQC member? You can still download Metric Highlights for Financial Processing at Shared Services Centers for free.