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The 3 Most Common Profit-Killing Mistakes to Avoid

According to Gartner, just three types of financial decision-making mistakes can cost businesses around 3% of their net profit. Operational decisions are increasing in speed, volume and complexity — creating a challenge for finance, whose job it is to make sure those decisions are financially sound. Many finance teams have invested in different tools and technologies to improve their decision-making capabilities, however, few are successful at consistently supporting business decisions in a way that delivers tangible business value. To change this, finance leaders must stop making the following profit killing mistakes: confusing a desired outcome with the likely outcome, overlooking a decision’s effects on other parts of the company, and having an “any business is good business” mindset.

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