Tell us about a time when you had to make a tough financial decision. What was the outcome and what factors influenced your decision?

Sample answer to the question

One tough financial decision I had to make was whether to invest in a new software system for our finance department. The outcome was a significant improvement in efficiency and accuracy. The factors that influenced my decision were the high cost of the software, the potential benefits it could bring to the team, and the long-term savings it could generate.

A more solid answer

A tough financial decision I faced was whether to invest in a new software system for our finance department. After conducting a thorough cost-benefit analysis and considering input from key stakeholders, I decided to move forward with the investment. The outcome was significant improvement in efficiency and accuracy in our financial processes. The new system streamlined our accounting operations, reduced errors, and allowed us to generate reports more quickly. I presented the analysis and the decision to the executive team, highlighting the potential long-term cost savings and the benefits to our finance team's productivity. This demonstrated my analytical and strategic thinking skills, financial management abilities, and effective communication and presentation skills.

Why this is a more solid answer:

The solid answer provides specific details about the decision-making process, the outcome, and the impact on the organization. It demonstrates strong analytical and strategic thinking skills through the thorough cost-benefit analysis and consideration of key stakeholders' input. It also showcases financial management abilities by highlighting the long-term cost savings and improved efficiency. Furthermore, it showcases effective communication and presentation skills by describing how the decision was presented to the executive team.

An exceptional answer

A tough financial decision I encountered was whether to outsource our accounting functions to a third-party company. I conducted extensive research on potential outsourcing providers, evaluating their track record, cost structures, and reputation. After careful consideration, I recommended outsourcing as the best option to improve efficiency and reduce costs. The outcome was a successful transition to the third-party company, resulting in significant cost savings and improved financial processes. I presented my research findings and recommendations to the executive team, emphasizing the potential benefits and addressing any concerns they had. This demonstrated my exceptional analytical and strategic thinking skills, as well as my ability to effectively manage financial resources and communicate complex ideas to stakeholders.

Why this is an exceptional answer:

The exceptional answer goes above and beyond by providing a more complex and impactful example of a tough financial decision. It demonstrates exceptional analytical and strategic thinking skills through extensive research and evaluation of potential outsourcing providers. The outcome of significant cost savings and improved financial processes showcases exceptional financial management abilities. Additionally, the answer highlights strong communication and presentation skills by addressing concerns and effectively communicating the recommendations to the executive team.

How to prepare for this question

Reflect on past financial decisions you have made and the factors that influenced them.
Practice articulating the decision-making process and the outcomes of those decisions.
Brush up on your knowledge of financial software and accounting systems to demonstrate your expertise in the field.
Prepare examples of how you have aligned financial goals with company objectives in your previous roles.
Develop a strong understanding of financial reporting standards, compliance, and corporate finance.
Be ready to discuss how you have managed financial resources and made tough decisions in a fast-paced and dynamic business environment.

What interviewers are evaluating

analytical and strategic thinking skills
financial management
communication and presentation skills