Making decisions is one of the most important – and challenging – aspects of being a CFO.
Whether it’s deciding how to allocate resources, what investments to make, or how to respond to changes in the market, getting decisions right can be the key to success for any business.
But making good decisions isn’t always easy, especially when there are so many factors to consider and risks to weigh up.
That’s why we’ve put together this quick guide on how to make better, faster decisions as a CFO.
By following these five simple keys, you can set your business up for success and avoid costly mistakes.
1. Define the problem
The first step to making any good decision is to clearly define the problem you’re trying to solve.
If you don’t know what the issue is, it’s impossible to find a solution.
So take some time to think about the situation and identify the key issues at play.
This is where using a business intelligence tool can be really helpful.
By having all the data you need in one place, you can quickly identify patterns and trends that can help you zero in on the problem.
For instance, accounting software with built-in analytics and reporting can be a valuable resource that provides valuable insights that you might not have considered. This is crucial to making a well-informed decision.
This type of software can help you quickly gather and analyse data so you can identify the key factors affecting your decision.
2. Consider all the options
The best decisions are shaped by consideration of many different viewpoints.
Once you’ve identified the problem, it’s time to start generating possible solutions.
Don’t just go for the first idea that comes to mind – take some time to explore all the different options available to you.
Again, this is where technology can be really helpful. You want to look at the data generated by your accounting system from as many angles as possible to get a comprehensive view of the situation.
In some cases, the technology will make it clear what the solution is, based on the data. But if not, you can at least use it to shortlist a few options that are worth further investigation.
In such cases, it makes sense to move to the next point below.
3. Weigh up the risks and rewards
Once you’ve considered all the options, it’s time to start narrowing down your choices.
Write down all the different ways you could solve the problem, and weigh up the pros and cons of each option.
This will help you to quickly compare and contrast the different choices, and make an informed decision about which is the best option.
4. Consult with others
If you’re struggling to make a decision, it can be helpful to consult with others.
Talk to your team, your colleagues, or even outside experts to get their opinion on the matter.
Hearing other viewpoints can help you to see the situation in a different light, and make a decision that you’re confident in.
5. Trust your gut
In some cases, the best decision is the one that feels right.
If you’ve considered all the options and consulted with others, but you’re still struggling to make a decision, sometimes it’s best to go with your gut.
In the end, you’re the one who has to live with the decision, so trust your instincts and choose the option that feels right for you.
Conclusion
Making good decisions is essential for any CFO, but it’s not always easy.
By following these five simple keys, you can make better, faster decisions that will set your business up for success.
Define the problem, consider all the options, make a list of pros and cons, consult with others, and trust your gut to make the best decision for your business.
SunSystems is a comprehensive business management software solution that helps CFOs to make better decisions. With integrated analytics and reporting, SunSystems provides the data you need to make informed decisions quickly and confidently. To find out more, contact us today.