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Service Financial Management


How to calculate
How to use it
Budget Accuracy
Financial reports, budgets
(Actual spend / Budgeted amount) * 100
Evaluate the accuracy of IT budget forecasts and financial planning
Cost per Service
Financial records, service usage data
Total cost of service / Number of service units
Determine the cost-effectiveness of each IT service
Cost Recovery Rate
Financial reports
(Revenue from services / Costs of services) * 100
Measure the percentage of IT costs recovered through internal or external charging
ROI on IT Investments
Financial records
(Net profit from IT investments / Cost of IT investments) * 100
Assess the profitability and effectiveness of investments in IT services
Variance from Budget
Budget reviews, financial statements
Budgeted amount - Actual spend
Monitor deviations from the allocated budget to manage and adjust financial planning
Total Cost of Ownership (TCO)
Purchase, operation, maintenance records
Sum of all costs related to a service over its lifecycle
Calculate the comprehensive cost of owning and operating an IT service
Service Charging Compliance
Charging logs, compliance reports
Percentage of services correctly charged according to policy
Ensure all IT services are charged accurately and in compliance with financial policies
Financial Efficiency Ratio
Financial records
(IT operational cost / Total revenue) * 100
Evaluate the efficiency of IT spending relative to the organization's revenue
Capital Expenditure (CapEx) vs. Operating Expenditure (OpEx)
Financial records
Ratio of CapEx to OpEx
Understand the balance between capital and operational spending
Service Investment Analysis
Financial reports, service performance data
Analysis of financial investment against service performance
Align financial investments with service delivery outcomes
Cost Reduction Initiatives
Project reports, financial records
Number of initiatives implemented to reduce costs
Track efforts and effectiveness of cost reduction measures
Cost Transparency
Stakeholder surveys, financial reports
Degree to which stakeholders understand cost drivers
Improve clarity on what drives costs within IT services for better decision-making
Billing Error Rate
Billing records
(Number of billing errors / Total bills issued) * 100
Measure accuracy in the billing process to ensure financial integrity and customer satisfaction
Financial Compliance Audit Findings
Audit reports
Number of issues found during financial audits
Identify and correct compliance issues in financial management practices
IT Financial Literacy
Training records
Number of IT staff trained in financial management
Enhance the financial understanding of IT staff to improve financial decision-making
Budget Utilization Rate
Budget monitoring reports
(Amount spent from budget / Total budget) * 100
Monitor how effectively the IT budget is being used
Cost of Financial Management
Financial reports
Total cost associated with performing financial management activities
Evaluate the cost incurred in managing finances relative to the value provided
Revenue Generated from IT Services
Sales records, financial statements
Total revenue from IT services
Measure the revenue contribution of IT services to the organization
Financial Planning Cycle Time
Planning documents, timelines
Time taken to complete financial planning cycle
Assess the efficiency of the financial planning process
Stakeholder Satisfaction with IT Value
Stakeholder satisfaction survey results regarding the value derived from IT investments
Gauge how satisfied stakeholders are with the ROI and overall value provided by IT services
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