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 data analytics is crucial for strategic decision-making. Yet many organizations still struggle to translate growing volumes of financial and operational data into insight leaders can act on confidently.

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

 Why data analytics has become a CFO imperative

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

• Where is the business creating — and losing — value?
• How resilient are our margins under different scenarios?
• Which investments will deliver the strongest return?
• What risks could derail our strategy?

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 foundational to fulfilling the CFO’s strategic role.

Where CFOs are applying 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 close and reporting cycles — freeing teams to focus on analysis rather than reconciliation.
• Performance management. Analytics enables CFOs to track key performance indicators, identify areas of strength and weakness, and measure progress against strategic objectives 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 embed analytics into finance decision-making gain clearer visibility, stronger control and better strategic outcomes:

• Improved accuracy. Data-backed insight replaces intuition, leading to better forecasts, fewer errors and more confident decisions.
• Greater efficiency. Automation reduces manual work and allows finance teams to focus on higher-value, strategic activities.
• Deeper insight. Analytics reveal patterns and trends that often are 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. Finance 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 understanding which data sources and metrics truly support strategic decisions. Common financial KPIs that CFOs rely on include EBITDA, revenue trends, expenditures, 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 trusted, creating a reliable foundation for analytics and future innovation. An effective data governance framework requires data ownership, standards, quality controls and security. Technology plays a critical role here — but only when paired with 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 analytics.
• Invest in the right tools and technologies. Modern analytics requires tools that align with decision-making needs, not just reporting requirements. CFOs increasingly are investing in technologies that make insight more accessible and actionable, including dashboards and reporting tools, business intelligence platforms and AI-enabled analytics.

The goal isn’t technology for its own sake — it’s enabling faster, more informed decisions across finance and the broader business.

Turning 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 create the foundation needed to adopt advanced tools — including AI — with confidence.