Why you should Automate the Sales Commission Process
The most crucial measure that firms track is probably top-line revenue growth, and the sales commission process is one of the factors that drive it. However, manually computing commissions may lead to errors and disgruntled sales representatives.
If you are still using (and suffering with) Excel for commission calculations, here are a few reasons why you should consider automating your sales commission calculation with sales commission software, a type of software that automates even the most complex commission processes.
Adopting modern sales commission software allows salespeople, their supervisors, and potentially anybody else in the business to have real-time access to commission computations. Having access to this data encourages sales representatives to evaluate their earnings and work toward increasing them. While monitoring their sales teams' development, sales managers can also inspire them.
This helps you to motivate your sales teams. There will be less manual reporting and it offers transparency in the actual mathematics that underlies the figures. As a result, the sales representatives are more likely to believe the numbers since they can quickly and easily see how they were calculated.
Calculating commissions for each rep can take hours or even days. Skepticism arises because human error could occur. Using Excel for this will not only make the procedure incredibly slow and tiresome but also prone to errors. Hours are spent by sales representatives figuring out, verifying, and re-verifying their final commission statements with their management and finance teams. When a sizable staff spends so much time on pointless tasks, it’ll reduce efficiency and waste time and energy.
By eliminating the need for human participation in the commission calculation and payment processes, sales commission software ensures that the process is error-free. Additionally, it frees up sales teams' time to concentrate on closing deals rather than calculating commissions.
Scalability and growth are constrained when commissions are calculated manually. When businesses attempt to calculate commissions within Excel, they encounter significant difficulties that make it impossible to scale.
Did you know that only 12% of spreadsheets are error-free? Imagine using Excel to calculate commissions for hundreds of thousands of sales representatives with 88% of those calculations being inaccurate. It's a terrible situation to be in when resources are wasted in the form of wasted time, effort, and money, coupled with disarray and demotivated sales representatives. Imagine that this occurs frequently now. Unhappy sales representatives as a result of incorrect commission calculations result in high turnover rates. The likelihood of error during payment release as well as the rigidity of cash and brand vouchers present still another barrier when payments are released manually.
Automation lowers human error—eliminating over 90% of errors ultimately—allowing you to have faith in your data and know that your choices are supported by evidence.
Commission systems make it possible to report thoroughly on sales commission data because all transactions and calculations take place within the system. Sales representatives, team leaders, and management have the ability to slice and dice the information at their disposal thanks to analytical tools and dashboards.
Since you cannot configure tax consequences when manually computing commissions in Excel, much less take into account data based on slabs or regions, financial reporting and legal compliance are independent of commission calculation and payouts.
Sales commission software can manage user authentication, all security measures like GDPR or ISO, and local tax consequences and compliance in addition to enabling fair, error-free, and transparent reward computations.
Even if you are manually controlling one component of your sales process, the truth is that you cannot be strategic. You lose out on your finest sales reps, key time, and essential efforts because you're concentrating on tactical measurements rather than strategy—and to make matters worse, your data is stagnant, making your decisions reactive rather than proactive and costing you hundreds of dollars.
If you are still using (and suffering with) Excel for commission calculations, here are a few reasons why you should consider automating your sales commission calculation with sales commission software, a type of software that automates even the most complex commission processes.
1. Increased visibility into the sales commission process
Adopting modern sales commission software allows salespeople, their supervisors, and potentially anybody else in the business to have real-time access to commission computations. Having access to this data encourages sales representatives to evaluate their earnings and work toward increasing them. While monitoring their sales teams' development, sales managers can also inspire them.
This helps you to motivate your sales teams. There will be less manual reporting and it offers transparency in the actual mathematics that underlies the figures. As a result, the sales representatives are more likely to believe the numbers since they can quickly and easily see how they were calculated.
2. Increased sales and finance team productivity
Calculating commissions for each rep can take hours or even days. Skepticism arises because human error could occur. Using Excel for this will not only make the procedure incredibly slow and tiresome but also prone to errors. Hours are spent by sales representatives figuring out, verifying, and re-verifying their final commission statements with their management and finance teams. When a sizable staff spends so much time on pointless tasks, it’ll reduce efficiency and waste time and energy.
By eliminating the need for human participation in the commission calculation and payment processes, sales commission software ensures that the process is error-free. Additionally, it frees up sales teams' time to concentrate on closing deals rather than calculating commissions.
Scalability and growth are constrained when commissions are calculated manually. When businesses attempt to calculate commissions within Excel, they encounter significant difficulties that make it impossible to scale.
3. Error-free commissions process
Did you know that only 12% of spreadsheets are error-free? Imagine using Excel to calculate commissions for hundreds of thousands of sales representatives with 88% of those calculations being inaccurate. It's a terrible situation to be in when resources are wasted in the form of wasted time, effort, and money, coupled with disarray and demotivated sales representatives. Imagine that this occurs frequently now. Unhappy sales representatives as a result of incorrect commission calculations result in high turnover rates. The likelihood of error during payment release as well as the rigidity of cash and brand vouchers present still another barrier when payments are released manually.
Automation lowers human error—eliminating over 90% of errors ultimately—allowing you to have faith in your data and know that your choices are supported by evidence.
4. Important reporting data and insights
Commission systems make it possible to report thoroughly on sales commission data because all transactions and calculations take place within the system. Sales representatives, team leaders, and management have the ability to slice and dice the information at their disposal thanks to analytical tools and dashboards.
5. Compliance with the legal and tax laws
Since you cannot configure tax consequences when manually computing commissions in Excel, much less take into account data based on slabs or regions, financial reporting and legal compliance are independent of commission calculation and payouts.
Sales commission software can manage user authentication, all security measures like GDPR or ISO, and local tax consequences and compliance in addition to enabling fair, error-free, and transparent reward computations.
Even if you are manually controlling one component of your sales process, the truth is that you cannot be strategic. You lose out on your finest sales reps, key time, and essential efforts because you're concentrating on tactical measurements rather than strategy—and to make matters worse, your data is stagnant, making your decisions reactive rather than proactive and costing you hundreds of dollars.
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