Most local firms not up to scratch with global peers in finance, accounting efficiency: survey

Only 25% match international peers.

A staggering 75% of firms here are not as efficient as their global counterparts in terms of accounting and finance (A&F) functions, a survey by the Institute of Singapore Chartered Accountants (ISCA) and SAP revealed.

Only the top 25% are on par with their global peers in terms of efficiency. For example, these Singapore companies take on average six days to close their quarterly accounting books, while their global peers take five days.

Likewise, the number of Days Sales Outstanding, which is the average number of days a company takes to collect revenue after a sale has been made, stands at 30 days for both Singapore and global companies.

“This finding highlights two points. Firstly, it shows that the top quartile of Singapore companies have the necessary resources and infrastructure to keep up with the efficiency level of their global peer group. At the same time, it raises questions as to why the remaining 75 per cent of our companies are not as efficient in their A&F functions as compared to their global peers. One possible reason could be the slower adoption of technology by these companies,” said Lee Fook Chiew, Chief Executive Officer of ISCA.