The increasing amount of data companies have at their disposal can improve the relationship between the sales and finance teams if the information is analysed in the right way, according to consultancy Metapraxis.
The sales and finance teams within an organisation have an historically tricky relationship – with the former focused on commission and targets, but the latter fixated on the overall financial health of the business.
The sales teams often feel the action of the accounts team can make it hard for them to go out and sell, while the finance divisions might feel their commercial colleagues set unrealistic targets and are unwilling to follow procedures.
This optimism versus realism dynamic can lead to these functions butting heads and can have a negative impact on the performance of a business.
But Simon Bittlestone, managing director of Metapraxis, said that data can help improve the relationship between sales and finance teams.
“The concept of financial analytics has been around for a long time," Mr Bittlestone said. "The difference between now and in the past, is that the amount of data is now bigger, so it plays a larger role. Used correctly, it can offer you a competitive advantage.”
He added that data can help when financial forecasts are being set. It enables both teams to have a better idea of how the business is performing and will perform at a more granular level. As a result, clearer business objectives can be set between the sales and finance teams.
This is because using the data to create algorithms to project future sales will replace any inbuilt bias the sales team has and lead its members to have more informed conversations with the finance team.
According to Mr Bittlestone, smaller firms can also benefit from analysing data to understand better how the business is performing.
They will not have the same amount of money to spend as larger firms, but there are open-source software tools on the market that can help advisers analyse their data better. These are available from the likes of Amazon or Microsoft.
Clive Perks, director at IFA Supportive Financial Planning, said that as a small firm, the collaborative culture that is promoted between the teams means it is easier to analyse how the business is performing.
Ima Jackson-Obot is features writer at Financial Adviser
