Very few people enjoy budgeting season, especially those with a subscription-based business model. SaaS companies at every stage of their growth are challenged with the task of aligning investments with business objectives. Once the revenue targets are set, business leaders need to devise sales strategies, set quotas, assign territories and sales roles, as well as implement multiple incentive compensation plans to motivate their sales, professional services, and customer success teams.
Developing your budget is a systematic method of achieving strategic goals. Your corporate budget is used to monitor progress toward those goals, help control spending, and predict cash flow and profit.
By now you understand what you need to do to develop a successful sales strategy for 2018. Obero SPM can help you model various compensation plans, territory and quota models to make sure your sales investment is aligned with your revenue goals.
ASC 606 and IFRS 15 employ a completely new framework in accounting for contracts. This includes accounting for sales commissions and other direct costs of acquiring a contract. The new standards require costs to be capitalized (that is, not immediately expensed) and then amortized over the life of the customer relationship for contracts that are in force for more than a year. All other costs of obtaining a contract are immediately expensed. These costs include advertising, marketing and administrative expenses such as sales management.