Finance Forward: Accelerating Federal Finance Transformation
Discover where the Federal government stands in its finance transformation journey.
Rounding the finance modernization curve
The Federal government manages over $6 trillion in annual spending, the equivalent of roughly a quarter of the nation’s gross domestic product (GDP). However, many agencies continue to rely on outdated and inefficient financial systems that fail to meet the demands of today’s digital era.
The KPMG report, “Finance Forward: Accelerating Federal Finance Transformation,” explores the state of Federal government finance transformation, challenges, and key priorities. View the highlights below and download the full report for the trends, tools, and leading practices that can help the Federal government accelerate its technology-enabled finance transformation.
Source: Fiscal Data, Treasury.gov, "Spending Trends Over Time and the U.S. Economy" (October 2023).
Finance Forward: Accelerating Federal Finance Transformation
Understanding that 76% of Federal finance professionals believe the pace of transformation is too slow shows there is a significant opportunity for leveraging technology – such as advanced analytics, AI, and cloud-based solutions – to enhance the finance function within the Federal government. KPMG is particularly energized to assist in fostering deeper collaboration between finance and IT departments to help them achieve their modernization goals.
Jon Edge
Managing Director, Federal Advisory, KPMG US
The state of Federal finance
While the majority of Federal agencies have begun modernization, less than half say their management- systems are very effective in critical areas like financial planning, compliance, and data integrity
21%
still rely on manual processes or systems with limited automation
87%
say their agency needs to extract more value from financial data
Hurdles to modernization
Three out of four Federal financial leaders say modernization is not moving fast enough. Challenges include:
Dive into our thinking:
Finance Forward Report
View a detailed breakdown of where Federal agencies and Military services stand in their finance transformation journey.
Download PDFCivilian & DoD Priorities
Financial transformation priorities differ between civilian and defense organizations, with defense organizations more likely to focus on technology upgrades and civilian agencies more likely to focus on workforce development.
Top civilian priorities:
- Data management and analytics
- Workforce development
- Governance, Risk, and Compliance (GRC)
Top DoD priorities:
- Technology upgrades
- Data management and analytics
- Governance, Risk, and Compliance (GRC)
Find out what our leaders have to say about the findings
In an interview with MeriTalk, KPMG Managing Director Jon Edge shares his thoughts about the report findings and what steps the Federal government can take to move the needle in their finance transformation journey.
HOW WE HELP
The way forward
Recommendations to Federal leaders
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Go Further with KPMG
KPMG can help jumpstart your finance transformation journey – no matter where you are. Whether you need help with modernizing technology, reskilling personnel, improving internal processes, or enhancing data governance, we’ve got you covered. Our experienced professionals can action real change tailored to your needs, today.
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