Summary: The Fortune Global 500 companies we surveyed indicate negative business impacts related to GCR processes. To guard your company from risk, you must identify new ways to manage and operate your GCR processes.
In the past 12 months, percentage of companies from Fortune Global 500 experiencing
Consequences of inadequate GCR management
New finance operating models impact GCR
Those who have recognized and capitalized on the opportunity to overhaul GCR processes in conjunction with their broader transformation of finance are already realizing the benefits. Benefits include:
- Enhanced operational agility
- Greater costeffectiveness
- Improved decision-making
Those that have not taken these actions will see an increasing need to do so.
As companies compete for growth, each function has to do its part to enhance performance. The finance function is no exception. Our survey shows that two-thirds of companies are in the midst of or have recently completed a finance function transformation and that another 13% will initiate one in the next two years.
Transformations often involve:
- Deployment of shared services centers (SSCs) and centers of excellence (CoEs)
- Reduction of in-country resources
- Implementation of standard global processes
- Evolution in information systems
- Adoption of new sourcing models
A word of warning from survey respondents; don’t exclude GCR from change initiatives
Our respondents believe that there are significant risks of increased costs due to inaccurate filings when a company excludes GCR from its change initiatives.
Percentage of respondents who identified the following risks of excluding GCR from finance transformation
Risks of excluding GCR from finance transformation
Tax authorities look for their fair share of global tax revenues
Regulators around the world have faced the same challenges as corporations: how to adjust to the reality of the new economy and the complexities of an increasingly global business environment.
Almost two-thirds of companies we surveyed see these trends as very significant or somewhat significant to their GCR activities in the near future.
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