Less than half of finance professionals (45%) believe that their company’s financial forecasts are reliable, new research from PwC has found.
This is despite four-fifths (80%) reporting that the accuracy of forecasts is vital to their business.
PwC’s report, Unlocking potential: Finance effectiveness benchmark study 2013, also found that over two-fifths of participants to its survey think that improved collaboration would help to make the current finance process in their organisations more efficient.
The research revealed that finance teams continue to be bogged down with routine tasks and dealing with crises of the moment, which prevents them from focusing on the long-term factors that drive business performance. Analysts are still spending (on average) nearly two-thirds of their time gathering data as opposed to analysing it.
But the good news is that finance teams now devote a quarter (25%) of their effort to insight-focused activities – a 40% increase since 2009.
The research also found that 42% of companies see finance as a facilitator in the strategic planning process, rather than merely playing a supporting role.
Meanwhile, around half (53%) believe that finance works closely with the CEO to develop the company’s business strategy.
Sally Percy is editor of The Treasurer