12 reasons why you should automate your sales commission

12 Reasons Why You Should

Automate Your Sales Commission

Tired?Are you still using (and struggling) with Excel in getting your sales commission process completed?

Here are 12 reasons why you should seriously consider putting more value on your time and automating your sales commission calculation:

1. Reduces Errors in Sales Commission Calculation

Automated Sales Commission Calculation…

Doing commissions in Excel introduces a tremendous number of errors into the calculation.

A structured sales commissions system like QCommission.com or Easy-Commission.com can reduce the number of errors in commissions and consequently save the company a lot of money.


2. Pays Commissions on Time

Manual processes to calculate sales commission can take significant amounts of time. Payments can sometimes be 30 or more days late. This causes reconciliation issues and dissatisfaction among the salespeople.

An automated sales commission system can allow calculation of payments as quickly as you want. Calculations can even be done during the period to estimate potential payments and for accruals.


3. Uses Sales Commission Plans that Fit Your Business Need

Sometimes commission plans that suit the needs of the business may not be implemented because of the difficulty of establishing the plan and administering them.

Sales commission automation allows the establishment of complex plans and eases the administration. It enables the business to design and implement plans that suit the current needs of the business.


4. Communicates Compensations Clearly

Commission systems maintain all the data involved in calculating commissions. This allows the production of clear and complete commission statements to the field.

More transparent communication means less confusion among the salespeople and less queries and problem solving effort regarding commission issues.


5. Has a Complete Reporting Ability

With all transactions and calculations stored in the system, commission systems allow the ability to report comprehensively on sales commission information.

Analytical and dashboard functions allow the user to slice and dice the information available in various ways. Additional reports can be easily created from the basic system.


6. Avoids Double Data Entry

If you have account applications such as QuickBooks™ , MAS 50 or 500™ or MS Dynamics™ or CRM systems such as Salesforce.com™ and SugarCRM, a lot of time and effort can be saved in getting the data directly into your commissions system.

The number of errors in data entry can be reduced.


7. Tracks Sales, Commissions, and Bonuses

Commission systems allow the loading of all sales and other performance data. Sales information can be tracked using the system. In addition commissions and bonuses can be tracked independently for the full plan duration.

Tracking sales and performance allows management to clearly identify good and poor performers whether in the products/services or among the sales people.


8. Reduces Administrative Time and Effort

Due to the reduction in errors, the automated nature of calculations, data integration, clear reporting, Commission Administrators can expect to reduce the effort required to calculate and pay commissions significantly.

They can be redeployed to do tasks that add more value to the company rather than simple administration.


9. Reduces Administrative and Over Payment Costs

Savings of time spent in administering the compensation plans and resolving issues can help in reducing administrative costs.

Errors in sales commission calculation favoring salespeople typically does not get reported, whereas errors favoring the company gets reported typically. Accurate calculations can save the company significant expenses in over payment of commissions.


10. Promotes Increased Trust and Morale

Having been burned by inaccurate calculations, the salespeople usually distrust the commission calculation process.

The automation of the calculation process, with access to all the data, and clear reporting of any calculation allows the salespeople to develop trust in the process and increase their morale.


11. Ensures Business Process Continuity

In many cases commission rules are embedded within individuals responsible for commission calculations. This puts the company at risk.

By extracting the rules and storing it in a system, it is easier to make sure the commission process can always be executed regardless of individual availability.


12. Increases Productivity

With salespeople not engaging in ‘shadow accounting’ of their commission statements, they are more likely to focus on selling activities with potential increases in revenue to the company.

With the clearer line of sight between the sales rep goals and the rewards by means of clear commission statements, sales people can be more focused on the sales activities that the business deems important.

Would you like to go ahead and automate your sales commission calculations?

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We first published this post on blog.easy-commission.com

http://lp.qcommission.com/qcommission-sales-compensation-solution/