How important is the relationship between Sales and Finance?
CSO in IT Services, 11 - 50 employees
It is very important and there are many good points mentioned here. Wayne Banks says it best below "Sales department is about near-term focus on new business. As this relates to Revenue, a probable pipeline has all sorts of impacts on finance – forecasts, meeting budgets, cashflow management and profitability analysis."The secret is finding middle ground.
CFO in Finance (non-banking), 51 - 200 employees
Extremely. We have to get away from being the “CF No,” and work toward becoming the engine behind data-driven decision making. We can help supercharge sales and marketing by using our statistical skills to hel prove in what works or what doesn’t.VP of Finance in Healthcare and Biotech, 501 - 1,000 employees
I have personal experience being the primary liaison between Sales and Finance. It was probably one of the most professional rewarding roles I have ever had. When Sales & Finance work in unison it is a great marriage that blends the action orientated sales function with the risk analysis provided by finance.When both teams have honest dialogue about challenges facing a business we can make strategic changes to realize the opportunities being presented. As partners, Sales and Finance can achieve greatness but when we don't work together we can be exposed to sub-optimal plans (the unintended consequences of incentives plans), unmeasurable goals, or time wasted debating reporting instead of delivering results.
Director, Customer Success in Software, 10,001+ employees
It is the most important relationship and is multifaceted. Finance in context is a regulator to sales. Think of the impact finance has for a firm or organization. It likely sets the budget and revenue targets and also manages expenses, payables, pricing and financing. So from inside out, sales and finance are cohorts for the same purpose. Capture most of the revenue possible from a client or customer via selling and make sure the books are in the black by controlling operational expenses, payroll, payouts and bills. Finance owns the ledger. Both columns. In and Out. Sales owns the 'in' part. Accounts Payable/Payroll owns the 'out' column. Finance, i.e. CFO owns both the columns and brings balance and profit accordingly.Content you might like
CTO in Software, 201 - 500 employees
Without a doubt - Technical Debt! It's a ball and chain that creates an ever increasing drag on any organization, stifles innovation, and prevents transformation.Autocratic0%
Transformational61%
Servant11%
Laissez-faire0%
Democratic17%
Coaching11%
Others0%
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Founder, Self-employed
Work travel is a privilege. Embracing your experience to meet new people, and see the beauty of nature and culture wherever you go.
Sales Incentive plans are a specific are that Sales management and finance need to work together. How will salespeople be incentivized, how / when will these incentives be paid, and so on need to be well understood by both parties.
Is it a priority of yours to ensure the relationship is close and/or positive?
Yes – very close and yes very positive.
1.Improved financial performance:
A positive working relationship between the CFO and Sales Director can lead to better financial performance as both parties work together to optimize the company's revenue and expenses.
2.Better decision making:
When the CFO and Sales Director have a good relationship, they are more likely to collaborate and make better decisions together, which can benefit the company as a whole.
3.Improved communication:
A positive working relationship can improve communication between the two departments, which can help prevent misunderstandings and improve efficiency.
4.Increased trust:
Trust is a crucial component of any successful business relationship. When the CFO and Sales Director have a good relationship, they are more likely to trust each other, which can help facilitate smoother operations.