Why Should Sales Leaders Care About Accounts Receivables?
I was recently onsite with a prospective client to observe their order-to-cash process. The main focus was on the finance/credit side, but after having some impromptu conversations, it became apparent that their Sales reps were doing much (if not all) of the collections work. The main reason for this was threefold: Credit Holds - Customers would be cut off from placing new orders if they passed their credit thresholds or went past due on aged invoices. Therefore, it was in the Sales reps best interest to ensure their customers were paying up so that they could keep the pipelines open for new orders. Relationships – Sales owned the relationship with the customer and wanted to have control over all communications specific to each customer (good or bad). Commissions – Sales reps were paid commissions when invoices were paid, giving them clear incentive to ensure quick payment of invoices. While the Read More