How top CFOs use data to shape strategy

May 20, 2026

This piece is sponsored by Eide Bailly LLP.

A version of this article first appeared on eidebailly.com.

According to research from the Financial Executives Research Foundation, 85 percent of CFOs say that data analysis is essential to strategic decision-making. Yet many organizations still struggle to translate growing volumes of financial and operational data into insight that leaders can confidently act on.

Tracking income and expenses alone provides visibility, but not direction. Top performing CFOs go deeper by using data to understand performance drivers, anticipate risk and guide smarter decisions across the business.

Why data analytics has become a CFO essential

As expectations expand, CFOs are being asked to answer more complex questions faster and with greater confidence:

Where does the company create and lose value? How resilient are our margins under different scenarios? Which investments will produce the strongest returns? What risks can our strategy derail?

At its core, data analytics is the process of examining raw data to uncover patterns, trends, and insights that inform decision making. For finance teams, this capability has become the basis for fulfilling the CFO’s strategic role.

Where CFOs apply data analytics today

Within the finance function, data analytics supports a wide range of high-impact use cases that shape decision-making across the business:

Financial reporting. Automating data collection and consolidation improves accuracy, reduces manual effort, and shortens closing and reporting cycles—freeing teams to focus on analytics rather than reconciliation. Performance management. Analytics enable CFOs to track key performance indicators, identify areas of strength and weakness, and measure progress against strategic goals in near real-time. Budgeting and forecasting. Granular, data-driven forecasts help organizations allocate resources more effectively and adapt quickly as conditions change. Risk management. By identifying and quantifying financial risks earlier, CFOs can develop mitigation strategies and strengthen ongoing risk monitoring. Investment analysis. Data supports more disciplined capital allocation by improving the evaluation of investment opportunities and expected returns.

The payoff of data-driven decision making

Organizations that successfully incorporate analytics into financial decision-making gain clearer visibility, stronger control and better strategic outcomes:

Improved accuracy. Data-backed insight replaces intuition, leading to better predictions, fewer errors and more confident decisions. Greater efficiency. Automation reduces manual labor and allows finance teams to focus on higher value strategic activities. Deeper insight. Analytics reveal patterns and trends often hidden in disconnected systems, helping leaders better understand performance and identify new opportunities.

For CFOs, these benefits translate into stronger influence, greater credibility and a more central role in strategic decision-making.

How CFOs can use data analytics more effectively

While the potential is clear, execution is where many organizations stall. Top performing CFOs focus on a few critical foundations:

Identify and prioritize the right data. Financial leaders are surrounded by data, but only a small portion of it meaningfully supports strategic decisions. Focusing on a defined set of relevant metrics helps avoid information overload and keeps analytics aligned with business goals. The first step is to understand which data sources and metrics actually support strategic decisions. Common financial KPIs that CFOs rely on include EBITDA, revenue trends, expenses, operating margins and days cash on hand. Establish strong data quality and governance. Analytics is only as reliable as the data behind it. Data governance ensures that information is accurate, consistent, secure and reliable, creating a reliable foundation for analysis and future innovation. An effective data governance framework requires data ownership, standards, quality control and security. Technology plays a critical role here – but only when accompanied by clear ownership and disciplined processes. Data quality tools can identify errors and inconsistencies, while data integration platforms help consolidate information from multiple systems into a unified view—creating a more reliable foundation for analysis. Invest in the right tools and technology. Modern analytics require tools that match decision-making needs, not just reporting requirements. CFOs are increasingly investing in technologies that make insight more accessible and actionable, including dashboards and reporting tools, business intelligence platforms and AI-enabled analytics.

The goal is not technology for its own sake – it enables faster, more informed decisions about finance and the wider business.

Turn data into strategic advantage

In a business environment defined by uncertainty and complexity, the most effective CFOs don’t just report on the business—they shape its future through insight-driven decisions. By focusing on the right data, establishing strong governance and building scalable analytics capabilities, finance leaders are creating the foundation needed to confidently adopt advanced tools – including AI.