The RevOps Misconception: Why Revenue Understanding is Essential

 

In the past few years, "Revenue Operations" (RevOps) has exploded in popularity. However, if someone on your RevOps team doesn’t have a solid grasp of how revenue is calculated, recognized, and accounted for on financial statements and board decks, you might want to reconsider calling yourselves RevOps.

As someone who has spent over 80% of my 10+ years of experience focused on revenue—and having adopted the title of Revenue Operations Consultant as early as 2017—I’ve observed a growing trend: the term “RevOps” is often confused with marketing ops or sales ops. Many will argue that customer success falls under this umbrella too, but in my experience, the sales operations function has always encompassed both sales and customer success operations.

The full revenue cycle is Lead to Cash. Various departments and roles contribute to this process—from operational roles to functional executors like sales reps and demand generation teams. However, the ambiguity around the term “RevOps” today has led to confusion. For example, titles like Chief Revenue Officer or Revenue Director often sit within the sales organization, creating a disconnect between their title and their actual function. These titles, while boosting the perceived importance of the role, can mislead both internal teams and external stakeholders about the influence they have on the company's overall revenue picture.

This confusion also has tangible consequences. One of the most frustrating side effects is how difficult it has become to identify and hire true revenue accounting talent. A simple LinkedIn search for "Director of Revenue" will yield results where at least 50% are salespeople, not revenue professionals.

Sales ≠ Revenue

In the B2C world, sales often directly translate to revenue, with minimal adjustments for things like refunds or warranties. In the B2B space, inclduing SaaS, the relationship between sales and revenue is far more complex. Revenue accounting requires significant judgment, and the numbers that ultimately show up in the board deck or financial statements are not the same as what RevOps or Revenue Directors see in their CRM reports.

Expecting sales or RevOps teams to fully understand the intricacies of revenue accounting is unrealistic. Instead, the solution lies in partnership. If your title includes “revenue,” it’s critical to partner with the accounting team. This collaboration ensures that revenue-related decisions and operations are accurate, informed, and aligned with the company’s financial realities.