Tuesday, September 20, 2005
Regulatory work costs companies 1.26% of revenue
Companies are faced with spending 1.26% of revenues on the finance function, as compliance issues such as Sarbanes-Oxley continue to become a major regulatory hurdle, according to the latest survey by Hackett Group.
The researcher found that 'typical' companies spent $940,000 (£520,500) per billion dollars of revenue on compliance management, while 'world-class' companies spent 36% less. These typical companies have seen an 18% increase in total finance costs since 2003.
'For most CFOs, the resources and focus required to comply have turned the tide of more than a decade of efficiency improvements and caused an increase in the total cost of finance,' said Hackett chief research officer Richard T Roth.
posted by Brian Moran @ 10:48 AM