| When you're moving up the sales ladder, whether it be | | | | assets, liabilities and stock holder's equity. For now, let's |
| from Senior Sales Representative to Sales | | | | focus on equity and liabilities. |
| Management, from Sales Management to VP of Sales | | | | For the purposes of this overview, let's assume that |
| level or from VP of Sales level to Executive Level | | | | you: |
| Personnel, becoming acclimated to all aspects of your | | | | 1. Have a good amount of sales representatives under |
| position is going to take some time. Regardless of | | | | you. This involves new business acquisition employees |
| what your strengths are, what comes naturally to | | | | around the country. To execute the sales plan laid |
| some and may prove to be quite difficult for you. | | | | forth, you have a certain budget or amount of money |
| However, there are some basic skills that can help any | | | | to spread around accordingly each quarter or year. |
| salesperson make an upward transition more easily. In | | | | This amount of money is your "equity." |
| this post, we'll take a look at basic accounting and how | | | | 2. Have a certain budget to penetrate new and |
| a good grasp on profit and loss will put any sales | | | | existing targeted regional accounts and, for the |
| executive ahead of the game. | | | | bookkeeper's sake, call it an employee expense. Some |
| 1. Accounting in Conjunction with Microsoft Excel | | | | of these expenses include: payroll, benefits, commission |
| As a sales manager, VP or Executive Level Sales | | | | owed and other expenses which may include: |
| employee, you constantly need to be doing basic | | | | employee car and gas expenses and, possibly basic |
| accounting to accurately predict whether you're going | | | | home office expenses, or "liabilities." |
| to meet your sales goals for the quarter. You are also | | | | Now that you have the basics, the accounting part is |
| going to need to use accounting in order to predict and | | | | quite easy. First and foremost, you want to ensure |
| set future sales goals. Also, you need to be able to | | | | that your assets are raising in comparison to your |
| evaluate the employees you are managing by looking | | | | liabilities. You must check this quarter after quarter. The |
| at their own sales goals and numbers. | | | | name of the game is to keep your assets high while |
| The only way to keep on top of the aforementioned | | | | retaining a low amount of liability. Once neatly put on |
| sales goals and employee performance is to learn and | | | | an Excel Spreadsheet, you can evaluate your |
| become familiarized with basic accounting methods | | | | statements and adjust your plan of attack to make |
| and Microsoft Excel. Don't worry, you don't have to be | | | | your company more profitable and effective. |
| able to adjust basic credit and debits under GAAP | | | | If you fail to keep a careful record of all your equity |
| (Generally Accepted Accounting Principals) standards | | | | and liabilities, you are, profit and loss wise, keeping |
| or file a company's taxes. However, you need to | | | | yourself in the dark and will have to guess as to |
| know the basics of both a balance sheet and income | | | | whether or not your team will be profitable. To ensure |
| statement. It might sound hard, but it is actually quite | | | | your numbers are accurate you should be in contact |
| simple. | | | | with your accounting department at least once a |
| Here are the basics: a balance sheet is a quarterly | | | | month. |
| report which is essentially divided into three categories: | | | | |