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Why Your CFO Belongs On The Sales Team

Forbes Finance Council
POST WRITTEN BY
Sal Rehmetullah

Modern scaling strategies require CFOs to do more than just crunch numbers and track departments’ budgets. A CFO needs to keep their finger on the pulse of the company’s CAC and LTV: cost per customer acquisition and lifetime value of that customer. Those two numbers can determine cash flow and inform your sales and marketing strategies. 

I’ve seen how much finance and sales need to be aligned for an organization to function — first in the finance world and then as a client director and account executive at a now-global software as a service company. Now, as the president of my company, a growing fintech organization, I have the pleasure of working with veteran sales leaders and finance experts. 

Your sales team, no matter the size, needs to be aligned with finance and the companywide goals for the year. A CFO is the right person at your company to keep that alignment straight. They understand the market opportunity and what needs to happen to capture enough of that market. Your CFO belongs on your sales team. 

There’s No One-Size-Fits-All CFO

Today’s marketplace has forced all executives to take an active role in sales and marketing, but your CFO is especially aware of what moves the needle. A CFO needs to be adaptable, but no industry is quite like any other. A startup’s CFO would need to be watching for strategies that drive growth and sell the company to investors to raise funds, whereas a CFO at a more established company may only need to focus on improving profitability. 

In either case, a CFO can’t just sit back and crunch numbers — they need to know the ins and outs of each department so they can add value. And that value changes depending on the product or service, the industry, and the market. 

Every Department Needs Finance

Your CFO’s first job is to deliver value to the company through managing the processes and control mechanisms in place. CAC and LTV are the two most crucial metrics for CFOs to track because they dictate your sales strategies. Is your team focusing on outbound strategies? Account-based marketing? Inbound leads? Are they offering incentives to customers to close a deal? These strategies make a difference when calculating CAC, and their effectiveness impacts LTV.

If one strategy isn’t working, it’s a CFO’s job to identify where the gaps are so the sales and marketing teams can make the necessary adjustments. This also extends to technology and operations. Every department’s work ties back into the overall health of the company and the EBITDA. CFOs can dig deep into the sales pipeline to forecast the next quarter and course-correct during the current quarter. 

Work Together

A CFO needs to be present in the sales department because they know what to prioritize in order to make serious progress. The sales pipeline should be constantly monitored since it directly affects and impacts your quarter and EBITDA, and your CFO is the best person to consult. Your CFO can watch carefully and make adjustments as necessary to fill the sales pipeline. That could mean adjusting your marketing spend or authorizing a special offer to get deals across the finish line. Your CFO is your best resource on how to course-correct as you spot potential problems through the quarter.

Your CFO and sales directors need to be aligned on goals and how the sales team is working as a whole. Your CFO can provide feedback and see how the team impacts the company’s operational plans. Weekly or monthly alignment and strategy planning meetings with sales development and sales directors keep everyone on the same page as to where the company is headed in the next quarter. Having your CFO actually present on the sales floor to see how the team works on a daily basis provides insight as well. At my company, we regularly have our leadership team sit down and review what has and hasn’t worked for the quarter. This ensures total alignment.  

Your CFO should be a part of your sales team for their insight and expertise, not just in finance, but in selling the company itself to potential investors. Their unique position means they can identify and fix potential problems before they snowball into something that drastically impacts your ARR or stops your company’s yearly growth.

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