Something to Consider May 2019 3
A recent survey has uncovered a worrying statistic: 71% of C-level executives completely trust the accuracy of their financial data. However, only 38% of finance professionals — the people preparing the statements and reports — share that opinion.
The findings are evidence of a clear disconnect and danger that seemingly ‘informed’ business decisions are being made on the basis of incorrect data. The financial figures drive many operating decisions, fuelling budgets as well as growth and cost initiatives. Obviously, inaccurate numbers may affect the expected outcomes of these plans.
The research confirms this risk, with seven in ten respondents (69%) stating that they or their CEOs have made a significant business decision based on incorrect or outdated financial data.
We tend to view risks as primarily things outside our direct control, but this is an interesting, as well as worrying, observation. This may be one financial risk we are not even identifying, assessing or mitigating! How do we ensure greater confidence in the numbers?
Many respondents said the problem is often hidden with 26% citing concerns over errors they knew existed but could not confirm due to lack of visibility into the data.
This is clearly a huge risk to the business. So numbers don’t lie, until they do, as the survey shows and our article of the week goes into detail about here