Basware Cost of Control research series: Cost of Control 2010 - Where's the money?
Poor visibility of key financial information is undermining CFO's confidence in company performance
The second annual global study, The Cost of Control 2010 provides insight into the opinions and priorities of 550 finance executives around the world. This year’s report highlights how poor visibility of key financial information is undermining CFOs’ confidence in their departmental and company performance, ultimately leaving doubts around profitability. Constrained by this limited visibility, businesses are struggling to make informed decisions and effectively forecast and manage costs.
Direct comparison with the 2009 research enables analysis of finance and procurement department trends over an economically turbulent 12 month period, while new investigations identify the levels of – and reasons for – confidence among senior finance professionals.
- Visibility, efficiency and collaboration between finance and procurement are key drivers of confidence. Only 45% of respondents believe they have a high visibility of cash within the business
- 58% of CFOs see improving profit margins as a strategic priority in 2010, up from 39% in 2009. Cost saving has declined as a strategic priority, dropping 5 percentage points from 2009
- Probably reassured by the sharp cost cutting efforts over the last 12 months, finance professionals are more likely to consider that procurement has a positive effect on profitability (48%) than in 2009 (29%) although 40% believe the relationship between finance and procurement could be improved
- 72% of companies have either increased automation of processes, or plan more invoicing automation in the next 12 months, whilst 65% have or plan more purchasing automation
The Cost of Control research series features insight from CFOs and financial directors in large organizations from the USA, UK, Scandinavia, Germany, Benelux, France and Australia. Previous installments to research series were published in June 2009 and November 2009