The CFO looks at the forecasts of all product teams business email list within the company and decides how much money the company needs to support operations. If the shortage of funds is expected, the CFO needs to find funds to supplement; if there is a surplus, the CFO needs to plan to put funds in other directions to avoid idle funds.
Here's an example: If a product manager plans to launch a product in May, there will be the first order in July, and the payment for the July order will not be recovered until September. The finance members on the team report this information to the CFO, who feeds it into the cash flow plan (by the way, if the production is a physical product, your forecast also takes into account when the product will be available for sale).
Now, assuming the launch is three months late (delayed to August) and the first orders don't materialize until October, it's likely that the company won't receive payment until the end of the year or the beginning of the following year. If the product manager does not understand the following two things, it is likely to be caught in a dilemma, namely the company's sales cycle and the order collection cycle (the product manager can use both to understand how long it takes to get paid after the order is placed).Gross profit (also commonly referred to as gross profit) is the revenue earned directly from the sale of a product, minus the cost of goods sold from gross revenue, or gross profit.
Gross profit is very important because it is an important measure of product profitability. For product managers and their cross-functional teams, gross profit is often the only reasonable measure of product profitability.