How to Get Sales and Finance Working in Lockstep (In QuickBooks)

When it comes to running a successful business, few relationships are more important—and more fraught—than the one between sales and finance. On one side, sales teams are motivated to boost revenue, often at a rapid clip. On the other, finance focuses on sustainable growth, ensuring the company’s profitability and compliance. Striking the right balance can be a game-changer.

In our recent webinar, Method’s Nelson De Miranda and FinOptimal’s Tom Zehentner, CPA (joined by host Matas Pranckevicius) delved into why sales-finance misalignment happens, how it can hurt your company, and what you can do to fix it. Below is a condensed and edited recap of the conversation, complete with actionable tips and a look at real solutions using Method and FinOptimal.

Key Takeaways

1. Set Shared Goals, Not Conflicting Ones
   When Sales is incentivized purely on top-line bookings and Finance is focused on profitability and cost control, friction is inevitable. Align KPI targets—like net revenue retention and gross revenue retention—to ensure everyone has skin in the same game.
2. Embrace “P&L Ownership”
   Encourage Sales reps to understand the true profitability of the deals they’re closing. This helps them make smarter decisions about discounting, contract length, and payment terms that Finance won’t have to untangle later.
3. Automate the Handoff
   Data silos derail even the best intentions. Use tools that automatically sync and reconcile data (e.g., proposals and invoices) from your CRM to QuickBooks. This reduces manual errors and finger-pointing between departments.
4. Regular, Structured Communication
   Commit to biweekly or monthly check-ins between Sales and Finance. Discuss upcoming deals, unusual payment terms, and any concerns around collections or discounting. Consistent dialogue prevents smaller issues from snowballing.
5. Avoid “Sales Debt”
   Short-term deals or heavily discounted annual contracts can erode margins. Aim for deals that are profitable throughout their lifecycle. If you tie variable compensation to retention, Sales will have the incentive to bring in the right kind of customers.

Why Sales-Finance Alignment Matters

Let’s face it: Sales sees itself as the revenue engine, while Finance sees itself as the guardian of the company’s financial health. While this tension is natural, lack of alignment can be costly:

• Overly Aggressive or Inaccurate Forecasts: Over 40% of Sales-Finance teams report forecasts being off by at least 10%. That makes planning for hiring, expansion, and inventory a game of guesswork.
• Late Invoices and Cash Flow Gaps: Half of B2B invoices are paid late, which means even “great” sales can hurt the company if the finance team isn’t prepared for real-world cash flow.
• High Customer Churn: Deals closed with the wrong pricing or wrong fit can lead to churn or unprofitable relationships that drain resources.

Ultimately, healthy friction between Sales and Finance is a good thing. When you channel that friction toward a common goal—driving profitable revenue—your entire business benefits.

Common Causes of Misalignment

1. Misaligned Incentives

• Sales: May focus on meeting quota or hitting commission tiers, sometimes at the expense of profitability.
• Finance: Typically focused on margins, cost controls, and minimizing risk.

2. Communication Gaps

• Lack of structured check-ins.
• Minimal visibility into each other’s processes—e.g., Sales might not realize how important invoice accuracy is to Finance.

3. Undefined Handoffs

• Sales closes a deal and moves on.
• Finance is left to untangle data, payment terms, or special pricing after the fact.

4. Limited Financial Literacy on the Sales Side

• Without a clear understanding of P&L and revenue recognition, reps might default to discount-heavy deals that shortchange profitability.

Example: The Cost of Misalignment

Scenario: Bright Spark Manufacturing

• The Sales team wins a large manufacturing contract with prepayment covering six months of service.
• The company uses the prepayment to cover unrelated short-term expenses.
• As the contract unfolds, the actual costs mount but the prepayment is already gone.
• Cash flow falls short, causing major operational headaches.

What Went Wrong

• Revenue wasn’t recognized over the six-month delivery period.
• Sales and Finance didn’t coordinate on how (and when) that money could be spent.
• Short-term boosts overshadowed long-term viability.

How They Could Have Fixed It

• Use deferred revenue practices: Recognize only a prorated amount monthly.
• Communicate spend requirements to ensure the company doesn’t tap into unearned revenue prematurely.
• Build in structured sign-offs from Finance for large prepayments or unusual contract terms.

Tools That Help: Method + FinOptimal

To illustrate how technology can bridge the Sales-Finance gap, Nelson (from Method) and Tom (from FinOptimal) walked through a live demonstration.

1. Using Method CRM for Proposals and Data Sync

Method is a QuickBooks-integrated CRM that streamlines the entire quote-to-cash process. Here’s how:

• Automated Proposals: Sales reps can send out proposals or estimates directly from Method.
• Digital Acceptance & Payment: When a client signs and pays, Method automatically creates and syncs an invoice (and corresponding payment) in QuickBooks—no extra emails or manual entry needed.
• Customizable Workflows: Set up notifications or approval triggers (e.g., if a discount is above 10%, or the contract is unusually long).

Why This Matters

• Sales can operate at full speed, sending professional, accurate proposals without waiting on Finance’s sign-off for every line item.
• Finance gets clean, consistent data in QuickBooks—fewer errors to chase down later.

2. Managing Deferred Revenue with FinOptimal

Once the invoice arrives in QuickBooks, FinOptimal’s “Accruer” app automates accrual-based accounting.

• Deferred Revenue: Accruer looks for a key phrase (“for the period…”) in the invoice description.
• Automatic Allocation: It then spreads that invoice amount across the specified time frame. For a $120,000 six-month contract, only $20,000 shows up as recognized revenue each month.
• Real-Time Accuracy: Your books stay up to date without any manual entries or complicated spreadsheets.

Why This Matters

• No more inflated monthly revenue numbers or lumps of “mystery” cash that vanish in future months.
• Finance can plan expenses and watch margins with confidence in the data.

Practical Tips for Better Alignment

1. Schedule Biweekly Sync-Ups
   Put Sales and Finance leads in the same (virtual) room to talk about upcoming deals, unusual terms, or red flags.
2. Define Clear Approval Processes
   Require Finance approval for large discounts or contract lengths outside the norm. This stops “rogue” deals before they become nightmares.
3. Encourage Financial Literacy
   Offer short training sessions on reading a P&L or understanding deferred revenue. The more Sales appreciates the big picture, the fewer conflicts down the road.
4. Audit Your Incentives
   If you notice salespeople chasing unprofitable deals to hit a quota, consider shifting KPIs to net revenue retention or gross margin. Reward profitable, long-term wins, not just volume.
5. Use Tech to Automate
   Free your teams from manual data entry. A CRM like Method plus an accounting automation tool like FinOptimal reduces errors, friction, and confusion.

Ready to Transform Your Sales-Finance Relationship?

Achieving harmony between Sales and Finance is possible—and it can be your fastest route to sustainable growth. Here’s how you can get started:

• Try Method: Get a free trial of Method and see how automated proposals, online payments, and real-time QuickBooks sync improve your quote-to-cash flow.
• Try FinOptimal: Head over to FinOptimal to automate your deferred revenue, invoicing, and other accrual accounting needs in QuickBooks.

Final Thoughts

When Sales and Finance work together—rather than compete—the entire company benefits. As Tom Zehentner, CPA put it, “Growth at all costs is dangerous; we want profitable growth.” This means building processes and tech stacks that ensure no one is left scrambling (or blaming) after deals are done. By taking ownership of both revenue and expenses, Sales teams become true business drivers, and Finance teams become enablers of sustainable success.

It starts with a mindset shift: P&L ownership for everyone, regular communication, and the right tools. Once you have that, you can wave goodbye to last-minute surprises and start building a long-term competitive edge.

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