A Fixed Marriage - Sales Management And Accounting Methods

When youre moving up the sales ladder, whether it be from Senior Sales Representative

to Sales Management, from Sales Management to VP of Sales level or from VP of Sales level to Executive Level Personnel, becoming acclimated to all aspects of your position is going to take some time. Regardless of what your strengths are, what comes naturally to some and may prove to be quite difficult for you. However, there are some basic skills that can help any salesperson make an upward transition more easily. In this post, well take a look at basic accounting and how a good grasp on profit and loss will put any sales executive ahead of the game.

1. Accounting in Conjunction with Microsoft Excel

As a sales manager, VP or Executive Level Sales employee, you constantly need to be doing basic accounting to accurately predict whether youre going to meet your sales goals for the quarter. You are also going to need to use accounting in order to predict and set future sales goals. Also, you need to be able to evaluate the employees you are managing by looking at their own sales goals and numbers.

The only way to keep on top of the aforementioned sales goals and employee performance is to learn and become familiarized with basic accounting methods and Microsoft Excel. Dont worry, you dont have to be able to adjust basic credit and debits under GAAP (Generally Accepted Accounting Principals) standards or file a company's taxes. However, you need to know the basics of both a balance sheet and income statement. It might sound hard, but it is actually quite simple.

Here are the basics: a balance sheet is a quarterly report which is essentially divided into three categories: assets, liabilities and stock holders equity. For now, lets focus on equity and liabilities.

For the purposes of this overview, lets assume that you:

1. Have a good amount of sales representatives under you. This involves new business acquisition employees around the country. To execute the sales plan laid forth, you have a certain budget or amount of money to spread around accordingly each quarter or year. This amount of money is your equity.

2. Have a certain budget to penetrate new and existing targeted regional accounts and, for the bookkeeper's sake, call it an employee expense. Some of these expenses include: payroll, benefits, commission owed and other expenses which may include: employee car and gas expenses and, possibly basic home office expenses, or liabilities.

Now that you have the basics, the accounting part is quite easy. First and foremost, you want to ensure that your assets are raising in comparison to your liabilities. You must check this quarter after quarter. The name of the game is to keep your assets high while retaining a low amount of liability. Once neatly put on an Excel Spreadsheet, you can evaluate your statements and adjust your plan of attack to make your company more profitable and effective.

If you fail to keep a careful record of all your equity and liabilities, you are, profit and loss wise, keeping yourself in the dark and will have to guess as to whether or not your team will be profitable. To ensure your numbers are accurate you should be in contact with your accounting department at least once a month.

by: kas ksundheim

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