Finance Productivity KPIs for Organizations: Getting Started

In this article, we review six productivity measures for finance that small organizations can use to measure and track the health of their finance function:

1. total cost to process accounts payable (AP) per $1,000, 
2. total cost to process accounts receivable (AR) per $1000 revenue, 
3. total cost of the finance function as a percentage of revenue,
4. return on invested capital, and
5. cycle time in days to prepare the annual forecast, and
6. cycle time in days to perform annual close at the site level.

Data for each measure, which comes from APQC’s Open Standards Benchmarking® database, shows a cross-industry view of performance. Performance can vary widely between industries, so it is important to benchmark each of these KPIs within your own industry for a clearer picture of your performance relative to peers and competitors.