“CFOs should decide how to balance their focus on the cost of the finance function versus its strategic value.”
CFOs are increasingly expected to accomplish more with fewer resources, so it’s important that they track how much it costs to run the finance function. This can be done by considering the total cost of the finance function as a percentage of revenue. Total cost includes personnel, systems, overhead, and any other costs necessary for day-to-day operation of the finance organization. CFOs should decide how to balance their focus on the cost of the function versus the strategic value they are trying to add. They need to look for opportunities to improve transactional efficiency and reinvest those savings into activities promoting strategic growth.