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This content is taken from the University of Leeds & ICAEW's online course, The Importance of Money in Business. Join the course to learn more.

Skip to 0 minutes and 2 seconds One of the reasons why you’re on this course is due to a decision you made, a decision to enrol on the course. We’re all faced with choices every time a decision has to be made. Even something as relatively simple as deciding what to eat for a meal involves a complex process. The final decision is made after assessing a number of variables. The first one is probably whether to dine in or eat out. Then you’ll need to look at the food choices available, your budget, the availability of tables, the amount of time you have, your personal tastes, transport and other arrangements. We often make these decisions without realising the process we are going through.

Skip to 0 minutes and 49 seconds Such is the capacity of our brains to multitask problems. In business the decisions are broadly the same. But ultimately, the main ones revolve around a set of key questions– What do we produce? How do we produce it? Where do we produce it? What do we charge? What does it cost to produce? To make a more informed decision we need data. And one of the key sources of data is from the finance team. They provide not only numbers but also business expertise, and experience to the team making the decisions. Jonathan Fairhurst and Zoe Wong explain the role of the finance team in the business. A day for me is very much focused on people.

Skip to 1 minute and 40 seconds I spend the majority of my time working with the business working with the senior executives and my financial team to identify the opportunities that we have as a business, that threats that there are from the business, and other opportunities to develop systems, develop approaches, and identify options for the future. As the finance manager I’m responsible for reporting accounts, telling everyone who’s senior what they need to know, helping shape the strategy and the direction that the business is going in, and basically answering all the financial queries as well. So I get a lot of responsibility. I have a lot of variety in my job as well. And every day is never the same.

Making choices

Every day we are faced with choices and need to make decisions. The same is true for businesses.

In our lives we make choices by considering the information available and reaching a decision. As Peter explains, businesses also need to make decisions about the products and services they produce and sell.

To make decisions, businesses need financial data and the expertise to interpret that information effectively. As we will see in this video, established companies often have a finance team dedicated to this task.

What’s next?

In the next step Peter will introduce you to one of most common techniques businesses use to analyse opportunities and make decisions.

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This video is from the free online course:

The Importance of Money in Business

University of Leeds