Sign up to receive accounting tips, videos, news and webinar info before anyone else
Mailing Address
21750 Hardy Oak Blvd
Ste 104 PMB 63328
San Antonio, TX 78258-4946
(760) 697-1033
Improving gross margin is one of the most impactful ways a company can strengthen profitability. Yet, too often, sales and finance teams operate in silos, one focused on revenue growth and customers, the other on budgets and margins. Crucial opportunities can arise when these two groups collaborate, such as increasing revenue while safeguarding profitability. Here’s how sales and finance can work together to improve gross margin and drive lasting growth.
Align Sales and Finance Goals to Strengthen Profitability
The foundation of improving gross margin begins with alignment. Sales teams often focus on hitting revenue targets. Alternatively, finance teams emphasize cost control and profit margins. Without alignment, a company might see sales growth but little to no improvement in overall profitability.
Finance can resolve the divide by sharing data that reveals how different deals, pricing models, and product lines affect margins. When sales understands which products or clients drive the most profit (and which ones eat into it), they can prioritize higher-margin opportunities. The result is a strategy that boosts both revenue and profitability.
How Sales and Finance Collaboration Improves Customer Insights
Finance teams hold valuable financial data that can guide smarter selling decisions. By analyzing metrics such as customer lifetime value (CLV), churn rate, and acquisition cost, finance can help sales pinpoint which customer segments deliver the greatest long-term profitability.
Sales teams, in turn, provide valuable frontline insights into customer needs, behaviors, and preferences. When these perspectives combine, companies gain a clearer view of who their most profitable customers are and how to attract more of them. This joint approach helps both finance and sales departments focus on the quality of revenue, not just quantity.
Sales and Finance Partnership in Pricing and Margin Strategy
Pricing decisions are one of the most direct ways sales and finance can influence gross margin. Finance teams provide the data that highlights how small price shifts or discounts affect profitability, while sales teams understand customer expectations and market trends.
When the sales and finance relationship is strong and collaborative, they can design pricing models that reflect true value while protecting margins. This is true whether through tiered pricing, volume-based incentives, or smarter discount policies. This partnership ensures pricing isn’t based on instinct alone, but on strategy and evidence.
Strengthen Forecasting Through Shared Insight
Accurate forecasting depends on collaboration. Sales contributes real-time insights about pipeline opportunities, seasonal trends, and customer sentiment, while finance adds historical performance, budget data, and cost analysis.
When both finance and sales teams cooperatively share this information, the organization gains a more reliable view of future performance. This supports leadership roles in planning resources, managing cash flow, and setting realistic targets, all of which help achieve stronger, more stable margins.
Build a Culture of Accountability and Communication
Authentic collaboration between sales and finance doesn’t happen overnight. It requires consistent communication and shared accountability. Regular meetings, joint performance reviews, and integrated dashboards help keep both teams aligned and focused on the same goals.
When sales and finance teams operate as strategic partners rather than separate entities, a culture emerges in which financial awareness and customer understanding coexist. Finance becomes an advisor that empowers, not restricts, while sales becomes more financially informed and effective in driving profitable growth.
FAQs About Sales and Finance Collaboration
How can technology help sales and finance teams work better together?
Modern software tools like customer relationship management (CRM) systems and enterprise resource planning (ERP) platforms can connect sales data with financial metrics in real time. This integration allows both teams to track margins, monitor customer profitability, and make faster, data-driven decisions. When technology bridges the gap, it reduces manual reporting and ensures everyone is working from the same accurate data.
What are common challenges when aligning sales and finance teams?
The most common challenges include differing goals, inconsistent communication, and a lack of shared visibility into data. Very often, sales teams feel pressured to meet revenue targets. Alternatively, finance teams focus on cost efficiency. Overcoming this requires open dialogue, regular strategy meetings, and shared performance dashboards that show how both the sales and finance departments in a company can impact the bottom line.
How can leadership encourage collaboration between sales and finance?
Leaders should set clear companywide objectives that balance growth and profitability. Creating joint incentive programs where both sales and finance share accountability for gross margin improvements can also make a difference. Leadership should also emphasize transparency and encourage cross-departmental discussions to keep priorities aligned.
How does collaboration between sales and finance affect customer satisfaction?
Customers benefit from more consistent pricing, clearer terms, and better service when sales and finance communicate effectively. Finance ensures that deals are structured sustainably, while sales ensures that customer needs remain a priority. This balance leads to stronger client relationships and longer retention.
What metrics should sales and finance track together?
Both teams should monitor gross margin, customer acquisition cost, average deal size, lifetime value, and discount impact. These shared metrics provide a complete picture of how revenue and cost dynamics interact, helping both departments make decisions that support profitable growth.
Can smaller companies benefit from aligning sales and finance?
Absolutely. Even small and midsize businesses can see weighty gains by aligning sales and finance functions. With limited resources, collaboration helps ensure every sale contributes meaningfully to profit. It also enables smarter budgeting, improved cash flow, and more sustainable scaling strategies.
Read More >>>
Matt Garrett is the Founder and Chief Executive Officer of TGG. He is a regular speaker across the country on behalf of Vistage educating business owners on the need for sound financial practices, and is Vice President of the Board of Directors of FINACA. Under Matt’s leadership, TGG has received the following recognition: INC. 5000 top companies in the U.S. five years in a row; one of “San Diego’s Fastest Growing Companies” the past four years; and is among San Diego’s “Best Places to Work.”
