Sales Managers and Accounting – A Forced Relationship

Sales Managers and Accounting - A Forced Relationship

As you move higher in your sales career in any direction, be it the Senior Sales Representative or Sales Management, from Sales Management to the level of VP of Sales or at the level of VP of Sales into Executive-Level Personnel being able to adapt to every aspect of your role is likely to take some time. No matter what you are skilled at, the things that are natural to certain people may turn out to be difficult for you. But, there are fundamental skills that will assist any salesperson in making an easier upward move. In this article, we’ll take a look at the basics of accounting and how having a firm understanding of profit and loss can put any sales professional ahead of the competition.

1. Accounting in conjunction with Microsoft Excel

As an executive, sales manager, and Executive Sales staff member, You must always be performing basic accounting to know with certainty the likelihood of meeting your sales targets for the current quarter. Additionally, you’ll require accounting to determine and establish future sales targets. Further, you must be able to evaluate your employees through their own sales targets and figures.

It is the only method to stay up-to-date with the above targets for sales and performance of employees is to get acquainted with the basic accounting techniques along with Microsoft Excel. Do not worry, and you do not need to know how to change essential credit and debits according to GAAP (Generally Accepted Accounting Principles) standards or even file taxes for a business. However, it is necessary to understand the basics of an income and balance statement. It may seem complicated, but in reality, it’s relatively easy.

See also  5 Steps For CEO's to Increase Sales During Downturns and Recessions

The basics are a flat sheet (or balance sheet) is the quarterly document that is basically divided into three groups: liabilities, assets, and equity of stockholders. In this case, we’ll concentrate on liabilities and equity.

To help you understand this overview, let’s say that you are:

1. You should have a large number of sales reps under you. This includes new business acquisition employees across the world. In order to implement the sales plan that you’ve laid out, you must have the funds or budget of money that you will spread in accordance with the time of each quarter or. The amount you spend can be described as what you consider your “equity.”

2. Create a budget that will be able to access new and existing regional accounts. And, for the sake of your bookkeeper, make this an expense of employees. These expenses can include payroll, benefits commissions owed, and various other costs that could consist of employee vehicle and gas costs, and perhaps, basic office expenses as well as “liabilities.”

After you’ve learned the fundamentals, the accounting aspect is a breeze. In the first place, you must ensure the assets you have are growing when compared to your obligations. It is essential to check this quarter after the quarter. The goal is to ensure that your assets are high while keeping a small amount of risk. After you have arranged your data on an Excel Spreadsheet, you are able to review your financial statements and alter your strategy of attack to help your company become more efficient and profitable.

See also  5 Ways You Can Stop Customer Service From Bleeding Your Bottom Line

If you do not keep a detailed account of all your liabilities and equity in a timely manner, you’re both profit and loss-oriented, being in the dark, and you will be left to guess how your business is profitable. To make sure your figures are accurate, you should keep in touch with the accounting team at a minimum once per month.