Finance Expense as a Percentage of Total Revenue
This PDF report includes benchmarking data (in a visual, chart-based format), an comprehensive KPI definition, characteristics of high performers and technical details on measuring Finance Expense as a Percentage of Total Revenue. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.
What is Finance Expense as a Percentage of Total Revenue?
The total expense incurred by the company's Finance Department divided by total revenue generated by the company over the same time period, as a percentage. Total finance expense should include all labor, technology and other overhead costs related to running the Finance Department.
Why should Finance Expense as a Percentage of Total Revenue be measured?
Finance Expense as a Percentage of Total Revenue measures the cost incurred by the company's Finance Department relative to total revenue generated by the company over the same time period. Finance Department expense should consume a relatively small portion of the company's assets, particularly in industries such as heavy manufacturing and consumer packaged goods, where day-to-day operations are more focused on producing and managing tangible assets. On the other end of that spectrum, investment banks, large insurance firms and commercial banks typically demand more focus, and cost, on internal finance-related function (i.e., treasury management, international tax management, etc.) to support their operations. In any case, relatively high finance costs may be related to highly manual (i.e., error prone) accounting processes, low-value work (e.g., excessive report generation, etc.), overstaffing and/or general inefficiencies within finance processes (e.g., financial close and reporting, account reconciliations, general ledger management, etc.).
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