In this article, we review five productivity measures for finance that small organizations can use to measure and track the health of their finance function:
- business entity revenue per business entity full-time equivalent (FTE),
- total cost to process accounts receivable (AR) per $1000 revenue,
- total cost of the finance function as a percentage of revenue,
- return on invested capital, and
- cycle time in days to prepare the annual forecast.
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.