Wednesday, January 23, 2008

Sales Budget - SFA

Sales Force Management (SFA) we are talking here which is a part of agency management system of business. We talk about Sales forecasting in our last talked. Today we are going to talk on Sales budget.

Sales Budget:

The sales budget is a statement of projected sales revenues and selling expenses. Agency management system needs to have a sales budget. The projected sales revenue is, in effect the sales volume objectives derived from the various sales forecasts. The projected selling expenses are determined by the different organizational units with in the sales department and are based on assigned sales and profit objectives.

The sales budget is best prepared in an atmosphere where the bottom-up planning style predominates, with each echelon preparing a tentative budget of revenue and expense.
During the period in which the budget is in effect, items in the approved budget are compared with actual sales and expenses, and action is taken to bring the two into alignment.

In reality, the sales budget is a composite of quotas for sales, profits and expenses. Budget is a valuable too for control.

ref: agency management system, Insurance SFA & CRM


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