Episode 16: The Importance of Financial Acumen

Client Success Matters

In this conversation, Jo Rogers speaks with Lucy Knox, founder of Alpha Alae, about the critical role of financial acumen in client services within agencies. They discuss the importance of training client services teams to understand financial processes, the impact of revenue recognition on agency profitability, and best practices for collaboration between client services and finance. The conversation emphasises the need for clear communication, accountability, and trust between departments to ensure the financial health of the agency.
Takeaways

• Client services must understand financial implications for agency success.
• Training in financial acumen is essential for client services teams.
• Clear processes and accountability improve collaboration between teams.
• Revenue recognition is crucial for accurate forecasting.
• Client services should provide timely information for invoicing.
• Understanding client payment terms is vital for cash flow.
• Finance should be involved before contracts are sent to clients.
• Trust between client services and finance is built over time.
• Effective communication prevents misunderstandings and blame games.
• Client services play a key role in the agency's financial health.