CFOs lack confidence in performance of their department

CFOs lack confidence in their company’s and department’s performance,
according to a study.

The lack of good processes to keep up-to-date information on financial data
has led to a fall in confidence in the finance department and company
performance according to a report, The Cost of Control, by IT company Basware.

Just 50% of finance executives globally said they had a “high level of
confidence” in the peformance of their department with 44% feeling the same way
towards the company’s performance overall.

Markus Maedler, one of the professors who compiled the report, said: “CFOs
are concerned that they do not have crucial information about where pockets of
profit and risk reside.

“Successful cost management, efficiency improvements, inter-departmental
collaboration and, ultimately, company profits and risk all rest on the same
anchor of good financial information.”

This is the second annual global Cost of Control survey by Basware with 550
finance executives participating.

Other findings include; improving profit margins as a priority for CFOs this
year jumped to 58% from 39% compared with 2009; and 64% will focus on “raw”
cost cutting over the next 12 months with 59% setting this agenda last year.

Further reading:

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