Explain the relation between sales and finance.
The relationship between the sales executives and the executives of finance and accounts department is crucial as it is the sales team assisting the finance department by furnishing sales estimates for the company budget and develop sales department’s budgets.
The finance department aids the sales department by providing rapid credit checks on prospective accounts and they also keep sales people informed about the customers’ credit standings. It has been often reported that there are some salespeople who are more interested in obtaining orders than in collecting amounts due that results in a tendency to grant credit to below-average risks.
The credit terms should be set to permit their use as selling points. There is requirement for close coordination and communication to strike a balance between individual interests of sales people and the best interests of the company they are serving.
Traditionally, it has been found that the executives of the sales department rely on the accounting department for billing customers, handling payroll computations and providing data for sales analysis etc. but then with the development of holistic management information systems in companies the performance of the above functions have shifted from the accounts department.
