In many organizations, treasury and sales departments often operate in silos, each focused on their immediate objectives. Treasury is concerned with cash flow, liquidity, and risk management, while sales prioritizes revenue growth, customer satisfaction, and closing deals. This separation can lead to disjointed communication, missed opportunities, and financial inefficiencies.
The Problem: Disjointed Communication
A typical scenario unfolds when sales teams propose discounts or extended payment terms without consulting treasury. The treasury team is then left to manage the financial implications, such as reduced liquidity or increased credit risk. Conversely, treasury might impose strict policies without understanding the competitive pressures sales face in the market. The lack of a cohesive approach can strain relationships between the two functions and negatively impact the organization’s financial health.
The Solution: A Shared Collaboration Platform
To bridge this gap, organizations need a shared platform where sales and treasury can seamlessly collaborate on financing deals, calculate discounts, and evaluate payment terms. This platform fosters transparency, improves decision-making, and aligns departmental goals. Here’s what such a tool could look like:
Key Features of a Sales-Treasury Collaboration Tool
- Real-Time Deal Analysis
- Sales teams can input potential deals, including proposed payment terms, discounts, and customer information.
- Treasury can instantly evaluate the impact on cash flow, working capital, and credit risk using automated calculations.
- Dynamic Discount Calculators
- Embedded calculators enable sales teams to offer discounts based on treasury’s parameters, ensuring profitability and liquidity are preserved.
- Treasury can set predefined thresholds, ensuring discounts align with cash management goals.
- Payment Terms Evaluator
- A collaborative module allows sales to propose payment terms while treasury assesses the financial feasibility.
- Automated scoring models analyze customer creditworthiness, payment history, and the financial impact of extended terms.
- Approval Workflow
- Integrated workflows ensure deals requiring treasury input are flagged automatically.
- Notifications keep both teams updated on deal status, approvals, or rejections, streamlining communication.
- Reporting and Dashboards
- Joint dashboards display key metrics, such as overdue receivables, discounted deals, and liquidity forecasts.
- Customizable reports offer insights tailored to both sales and treasury priorities.
- Integration with ERP/CRM Systems
- The tool connects to existing ERP and CRM systems, pulling real-time data for accurate analysis and reducing manual data entry.
Implementation Steps
- Identify Collaboration Pain Points
- Conduct workshops with sales and treasury teams to understand their challenges and expectations.
- Choose the Right Technology
- Opt for platforms with flexibility and integration capabilities, such as Power Apps, Coupa Treasury, or Salesforce.
- Train Teams
- Provide training sessions to ensure both teams understand how to use the tool effectively.
- Monitor and Optimize
- Regularly gather feedback and refine the platform to address evolving business needs.
The Benefits
- Enhanced Financial Visibility: Treasury gains real-time insights into upcoming deals, allowing proactive cash flow management.
- Faster Decision-Making: Sales and treasury can collaborate instantly, reducing delays in deal approvals.
- Improved Relationships: Transparency fosters trust and understanding between the two functions.
- Revenue and Risk Balance: Organizations achieve the delicate balance between growing revenue and maintaining financial stability.
By investing in a shared collaboration platform, companies can eliminate the traditional barriers between sales and treasury, driving both growth and financial resilience.
Visual Representation
Imagine a sleek user interface showing an integrated dashboard where sales and treasury collaborate effortlessly. This dashboard displays:
- A deal input form filled out by sales.
- Treasury’s instant evaluation, including cash flow impact and risk scoring.
- Notifications about deal approval status.
