subject: Sales Managers And Accounting - A Forced Relationship [print this page] When you're moving up the sales ladder, whether or not it's from Senior Sales Representative to Sales Management, from Sales Management to VP of Sales level or from VP of Sales level to Govt Level Personnel, turning into acclimated to any or all aspects of your position is going to take some time. No matter what your strengths are, what comes naturally to some and may influence be quite troublesome for you. But, there are some basic skills which will facilitate any salesperson make an upward transition a lot of easily. In this post, we have a tendency to'll take a look at basic accounting and the way a good grasp on profit and loss will place any sales government before the game.
1. Accounting in Conjunction with Microsoft Excel
As a sales manager, VP or Government Level Sales employee, you constantly want to be doing basic accounting to accurately predict whether you're going to satisfy your sales goals for the quarter. You are additionally going to need to use accounting in order to predict and set future sales goals. Also, you would like to be ready to evaluate the employees you are managing by trying at their own sales goals and numbers.
The sole manner to keep on high of the aforementioned sales goals and employee performance is to find out and become familiarized with basic accounting strategies and Microsoft Excel. Don't worry, you do not need to be in a position to adjust basic credit and debits underneath GAAP (Generally Accepted Accounting Principals) standards or file an organization's taxes. But, you need to understand the basics of both a balance sheet and income statement. It might sound hard, but it's really quite simple.
Here are the basics: a balance sheet is a quarterly report which is basically divided into 3 categories: assets, liabilities and stock holder's equity. For now, let's specialise in equity and liabilities.
For the purposes of this overview, let's assume that you:
1. Have a good quantity of sales representatives below you. This involves new business acquisition staff round the country. To execute the sales set up laid forth, you've got a certain budget or quantity of money to unfold around accordingly every 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 embody: payroll, benefits, commission owed and alternative expenses that might include: employee car and gas expenses and, presumably basic home office expenses, or "liabilities."
Now that you've got the fundamentals, the accounting part is quite easy. First and foremost, you would like to confirm that your assets are raising as compared to your liabilities. You want to check this quarter after quarter. The name of the game is to stay your assets high while retaining an occasional quantity of liability. Once neatly place on an Excel Spreadsheet, you'll evaluate your statements and adjust your plan of attack to create your company more profitable and effective.
If you fail to stay a careful record of all your equity and liabilities, you're, profit and loss wise, keeping yourself in the dark and will have to guess on whether or not or not your team will be profitable. To make sure your numbers are correct you ought to keep in touch along with your accounting department at least once a month.
