The Sales Director’s Challenge


Sales are vital to corporate cash flow and wellbeing. If even a handful of major deals slip by a month, let alone 3 months it could cause serious cash flow issues for some smaller companies and investor disappointment for larger companies. Timing of sales and their related cash flow really matters to companies of every size, and a Sales Director whose team miss their numbers is often not in  a very good position. CONVENDIA can help to make this much more predictable, and bridge the gap between the deal values that Sales actually expect to close and how much Finance will actually be able to recognise in the accounting period.

If you have experienced any of the following, then CONVENDIA will help you forecast better and manage your business more safely :

  • Deals constantly seem to slip. Even if the sales methodology gets the weighted probability right, deals never seem to get done earlier but only ever slip
  • It is often necessary to give a last minute discount to close deals, particularly around year end or quarter end for quoted companies
  • Deal slippage and discounting seems to vary tremendously between sales people despite trying to apply a uniform methodology, and it is always the same people whose deals slip
  • Deals were done before the end of the month but the revenue couldn’t be recognized
  • The salesman closed a deal and management were thrilled by the headline number, but then they got worried by the billing schedule – and the cash didn’t come in as soon as expected
  • Commission is paid partly on when a deal is done and partly based on when cash received and neither the sales person nor the Finance Team can easily forecast either the deal’s cash flow or what commission is payable when

A software salesman expects to close a EUR 1,000,000 deal before year end with a 6 month implementation period. But if he does close it what difference will it make to year end cash and revenue recognition in the current financial year and month by month in the following financial year ? If the deal slips to just after year end or is discounted by 10% to book the business before year end, how much difference will it make to reported earnings per share ? And how easily can we do the same analysis on a portfolio basis for the 50 deals that we are hoping to close before year end.

How we help Sales Directors

CONVENDIA takes the sales pipeline and then works out not only the weighted pipeline, but also the cash flow resulting from it, on a deal by deal basis and aggregated. It then allows one to build in delays to deals either at the individual deal level or by salesman or by product, and look at the resulting deal closure and cash flow resulting from that.

Traditional Sales Methodology specialises in taking sales calls from the identified opportunity stage to the prospect stage and then uses a methodology to assign weighted probabilities to those opportunities.  CONVENDIA takes this process one step further and allows sales people and their management and their C-Suite officers to run an analysis or get reports on what the likely range of outcomes is for sales, for the related cash flows and for the revenue recognition by accounting period.

CONVENDIA is available either as a cloud standalone with upload/download capability or as an add-in to Salesforce.com or Microsoft Dynamics. Licensing is per named user with a unique name and password required for each user.

Find out more

Contact us to learn more about how Revenue Modeller can help you

Like to learn more about how we can help ...provide CxO's accurate financials at the touch of a button| ...provide full cash and revenue implications of changes to deals in your sales pipeline | ...lift corporate financial fog to enable better strategic decisions | …provide fully automated cashflow and revenue forecasting | …reduce manual risk and operational inefficiency in consolidating data | ...you achieve transparency of financial information to key stakeholders | …spend less time on revenue forecasting data in spreadsheets | …provide accurate, real time revenue financials at the touch of a button| ...speak a common language on sales and cash through your organisation | ...improve visibility of achieving sales targets of the sales pipeline | ...make your meetings on revenue shorter and more focused | ...de-risk project change management impacts on corporate financials | ...value your project revenue streams | …model internal and external environment factors to predict the future