L3- Record to Report
Cycle time in days to generate complete Formula: [Cycle time in days to generate complete and
correct billing data]
and correct billing data
Description: Cycle time in days to generate complete and correct billing data.
UoM: Number Industry Benchmark: -
Why this is Top KPI? How is industry improving in this KPI?
It is used to determine the time required to generate accurate and • Using automation to reduce time and human error in billing process.
timely bills. A key requirement for estimating financing requirements. • Using electronic billing systems to reduce delivery time and allowing customers to
Timely/effective invoice generation and reporting: can ensure billing is download their invoices directly into their own accounting system
completed in a timely basis and reports are relevant to the end-user • Standardized processes and controls should be put in place and monitored to
ensure that the invoicing, accruing and collection/deduction. of rebates is
performed on a timely basis to maximize cash flow and minimize risk.
How are digital technologies providing opportunity to
improve this KPI? Use Cases?
• A cloud-based system can track and send out invoices promptly and • BASF: Invoice data is transferred directly to BASF from suppliers’ ERP systems on
speed up the billing process giving a real-time overview of the the platforms of our service providers SAP or Elemica. Each data record is furnished
current situation, eliminating dated data and manual errors. with a qualified electronic signature. Faster and more secure receipt of invoice.
• A good billing software will save countless hours by eliminating • Solvay: Uses automation in core processes in areas such as customer service,
manual data entry and constant follow-ups. Thereby speeding up supply chain, finance and procurement. They offer E-invoicing, for customers ready
the process. to receive Electronic invoices in PDF format in replacement of the traditional paper
• Automation can help to assess and clean master data is a necessity invoices
to facilitate consolidated billing. • DuPont: DuPont employs best-practice methods for freight invoice processing,
• SAP S/4HANA can be used for improving billing cycles. including rigorous audit controls using Cass' rating engine improves accounting
controls.
L3- Record to Report
Cycle time in days to complete the monthly Formula: [Cycle time in days to complete the monthly
consolidated financial statements consolidated financial statements]
Description: Measure the number of days to collect and process the financial data.
UoM: Number Industry Benchmark: -
Why this is Top KPI? How is industry improving in this KPI?
It is important for efficiency & accuracy of financial statement • Continuously map their processes from end to end, identify bottlenecks and
generation. When fewer days are devoted to the month-end close, pressure points, pinpoint opportunities for error
more days can be spent providing finance expertise to organizational • Automate to improve not just cycle time but the accuracy and cost-efficiency of
initiatives and decisions financial reporting. Adoption of standard chart of accounts, common financial data
definitions and good data governance is also improving this KPI.
• Continuously evaluating processes, timetables, policies, and systems and
How are digital technologies providing opportunity to
incorporating best practices, companies continuously improve speed and cost
improve this KPI? efficiency.
• Workflow automation is valuable with time-consuming
intercompany transactions Use Cases?
• Single ERP system can help to standardize processes, data, models, • A chemical company deployed SAP HANA to provide on-demand access to financial data
and reporting calendars across a sprawling enterprise. and real time reporting for timely and accurate financial reporting. After deployment the
• SAP HANA provides on demand access to financial data and real company saw report performance improvement by 4-6 times with added ability to view
time reporting for timely and accurate financial reporting. summary financial reports by profit center and months over months sale by
representatives and production efficiencies by plant.
• A global chemical company collaborated with Accenture to transition from its legacy ERP
to a hybrid cloud-based SAP S/4HANA 1610 platform for improving its various functions
such as record to report, P2P, OTC, production planning and inventory management.
L3- Record to Report
Cost of finance function Formula: ([Total cost to perform the function "manage
financial resources"] / [Total business entity
revenue]) * 100
Description: It defines the cost that is required to perform finance function as a percentage of revenue
UoM: % Industry Benchmark: -
Why this is Top KPI? How is industry improving in this KPI?
It helps to determine the cost efficiency of performing finance function. • By standardizing financial data models and charts of accounts
An organization’s financial costs include personnel, managing systems, • Automating routine transaction processing in accounts payable, accounts
overhead, and any other expenses necessary for the day-to-day receivable, and general accounting
operation of the finance organization. • Adopting a performance-driven culture at every level, measuring and re-measuring
the cost of processing everything from remittances to reimbursement requests
How are digital technologies providing opportunity to
improve this KPI? Use Cases?
• Greater adoption of technologies like artificial intelligence, cloud,
smart automation, and mobile computing can make a big difference • A British chemical giant collaborated with Novo Altum to conduct a thorough
in finance’s cost base. analysis of finance function to reduce cost and improve performance to drive
• Emerging cloud-based ERP solutions serve as templates for the business forward. They identified areas in which overall performance
improvement and reduce the cost of maintaining and upgrading could be improved and head count reduced in the function. The company’s
legacy, on-premises systems. performance increased drastically and its share prices increased .
• Smart Automation can overcome the lack of integration of
disparate systems and limit the need for human intervention,
reducing labor costs and speeding up cycle time while cutting error
rates
L3- Record to Report
Cycle time in business days to process the Formula: [Cycle time in business days to process payroll
from HR/benefits system cut-off to payroll
payroll transmit date]
Description: Measures the number of days to process the payroll for the employees for that period of time
UoM: Number Industry Benchmark: -
Why this is Top KPI? How is industry improving in this KPI?
• It helps to determine payroll distribution efficiency; • Companies are incrementally moving payroll back in-house to increase control and
• Ensure Ontime salary credit to employees' account. cost optimization.
• The speed and accuracy with which payroll serves its employees • Using cloud computing for payroll processes are cost savings and flexibility
impacts an organizations engagement, retention and brand. • Many organizations are already using mobile apps that enable their employees to
view current and past pay cheques, track time, file expense reports, change
withholdings, and more. The mobile computing trend is significant to the payroll
How are digital technologies providing opportunity to function as human resources (HR) teams increase their use of mobile applications to
interact with employees, especially millennial workers.
improve this KPI? • Organizations are analyzing both payroll and HR data to find ways to increase
• Automation has streamlined payroll processing and reconciliation,
efficiencies, drive revenue and reduce costs. Payroll data can provide a wealth of
freeing up staff time for higher-value tasks. It also improves
insight about an organization’s operations
accuracy.
• For payroll, AI can analyze all sorts of variables — employee Use Cases?
classification, age, withholding amounts, and so forth — and can • With help of Capgemini, Syngenta automated its payroll processing to minimize errors
improve accuracy by detecting nonobvious errors in paystubs. and increase efficiency
• Automation algorithm are used to compare declared vacation days • Solvay: Optimizing global workforce management using NGA’s global payroll
with data from badge swipes and computer-usage data to confirm outsourcing services managed on a single HR platform provided Solvay with a greater
whether employees were reporting vacation time accurately. HR process optimization and improved HR service delivery efficiencies. The main
• Cloud-based payroll software solutions can help organizations stay objectives of Solvay’s decision to partner with a single global HR services improves HR
current with tax compliance and other regulations and keep up service delivery efficiencies through the optimization of its HR & payroll processes.
with reporting more easily.
L3- Record to Report
Personnel cost to perform finance Formula: ([Total cost to perform the function "manage financial
resources"] / [finance function FTE]) * 100
function per finance function FTE
Description: Cost for the personnel to perform the finance function per finance function FTE
UoM: Number Industry Benchmark: -
Why this is Top KPI? How is industry improving in this KPI?
It gives estimate of cost for the personnel to perform the finance • By using technologies like robotic process automation, artificial intelligence,
function. In many organizations finance personnel are doing low key Internet of things and blockchain manually intensive, repeatable and inefficient
work. processes can be reduced. This leads to reduction in cost as employees engaged
in these tasks can be assigned strategic task and generate higher value.
How are digital technologies providing opportunity to • Finance function redeploy these employees e.g. Financial-planning and -analysis
professionals could be re-tasked to support the business. Tax specialists could be
improve this KPI? refocused to maximize after-tax income.
• The finance employees are also being trained to acquire new skills such as
• Task-automation technologies like robotic process automation for
prescriptive analytics, sophisticated modeling, advanced statistics, and data
purposes such as preparing journal entries
• science.
Cognitive-automation technologies like machine learning to
reconcile differences between disparate accounting records.
Use Cases?
• Dow uses automation for a range of business processes including order-to-cash,
procurement, finance and more for achieving higher quality with less effort.
Automation has helped Dow reduce operational costs, deliver successful
upgrades, accelerate projects, boost the durability and quality of their test assets,
and improve documentation and training for greater staff efficiency. Saved
about 8,000 hours of labor in 2014 through automation.
