Sales/Accounting duo: The winning partnership for your cash flow
“A sale is only a good sale if it has been collected.”
This phrase, well known to CFOs, is the very foundation of a cash culture. Yet, in many companies, a gap persists between two key teams: Sales and Accounting.
On one side, the sales force is driven by revenue and the conquest of new markets. On the other, the accounting and collection department ensures financial health and the effective collection of receivables. Far from being opposites, these two functions must work hand in hand. If this partnership is dysfunctional, the company’s entire financial performance suffers, leading to internal conflicts, payment delays, and even the risk of bad debt.
Poor collaboration and the real impact of bad debt
To understand the stakes, let’s look at a concrete example. Imagine a company makes a sale of €100,000 with a 10% margin. The expected profit is €10,000. If, unfortunately, this invoice remains unpaid, the cost to the company is not just the €10,000 in lost margin, but the entirety of the costs incurred to produce that sale (production, logistics, sales commissions, etc.). This is where the problem becomes critical.
How do you compensate for this lost margin? You have to generate a colossal amount of additional revenue just to break even.
Here is the unpaid invoice calculator to visualize the impact:
As shown in this table, if your margin is 10%, a €100,000 unpaid invoice forces you to generate €1,000,000 in additional revenue to compensate this lost. This is a gargantuan sales effort that could have been avoided through better collaboration and proactive credit management.
Reconciling teams around a cash culture
The key to performance lies in reconciling teams around a Cash Culture. It’s not about turning salespeople into accountants, but about making them aware of the financial impact of their sales. A salesperson who understands credit risk is a salesperson who negotiates better and ensures higher quality client follow-up. Similarly, an accountant who understands sales challenges is an accountant who adapts their reminders to avoid damaging the client relationship.
This is where CashNow comes in. CashNow is the central tool acting as the bridge between your teams.
A tool to centralize information and end internal conflicts
Thanks to its collaborative platform, CashNow centralizes all information related to the client and their payment status: communication history, payment promises, ongoing disputes, credit risk, etc.
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Salespeople have access to “Cash Info”: Before negotiating a new contract or visiting a client, they can check the account status. They know if invoices are pending or if the client is a good payer, and can adapt their strategy accordingly. No more surprises or tension during commission meetings!
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Accountants have “Sales Context”: During payment reminders, they have access to the client’s sales history. They can adapt their tone, personalize their message, and even involve the salesperson if necessary to resolve a complex dispute.
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Internal conflicts stop: Transparency in CashNow eliminates secrets and misunderstandings. Both teams work from the same reliable database, fostering collaboration and aligned goals.
The union of sales and finance for healthy cash flow
The Sales/Accounting duo is not an option; it is an imperative. By reconciling these two teams around a shared vision of Cash Culture, you secure your income, optimize your cash flow, and foster a more serene and high-performing work environment.
CashNow is the essential tool to materialize this union. By centralizing information and facilitating collaboration, we help you transform every sale into a real collection for sustainable and healthy growth.
