Effectiveness of the Finance Function in Slovakia

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A Survey among CFOs conducted by PwC in cooperation with the CFO Club

The purpose of our survey is to offer a basic comparison of the finance function within organisations in Slovakia, and thus the opportunity to identify areas for improvement in effectiveness and productivity. Following on from the findings of our CFO Survey, we are witnessing a transition from the traditional focus of the finance function to activities increasing the value of the business. We often now see the finance function participating in addressing broader strategic questions, defining effectiveness parameters through KPIs, taking responsibility for their monitoring and interpretation, and being responsible for budgeting and planning.

Key findings

  • Top finance teams spent less than 5% of time on data gathering compared to the typical time spent on data gathering which varies from 20-50%.
  • 40% of companies incur less than 1% of total revenues on running the finance function. On the other hand, as much as 1/5 of companies incur costs that exceed 4% of total revenue.
  • The smaller the size of the finance function, the more intensive the staff engagement in the role of business partners.
  • Almost 50% of companies do not have formalised productivity improvement programmes in place.
  • 75% of respondents need less than 6 days to finish the month end close. The top 18% companies take up to 3 working days, which allows them to spend more time on higher added value activities.
  • CFOs believe the way to enhance the productivity of the finance function is through process optimisation, the use of new technologies and staff training.
  • Finance functions should focus more on controls’ automation so that prevention naturally prevails. 
  • Almost 50% of companies spend more than 2 months on budgeting.
  • Slovakia falls behind the global trends in using shared service centres: only 22% of respondents use this function.
  • As much as 63% of companies use standard finance systems. Their disadvantage is seen as lower flexibility and longer response times.
  • It has been identified that there is room for significant enhancement of automation (data processing in MS Excel still prevails).