Automating Sales
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8 Reasons Why Automating Sales Commission Calculation Really Matters

Probably, like many IT Staffing owners you and your accountants might be using excel to calculate and track automating sales commissions. Actually, it’s not a fair idea! Because, once you start using spreadsheets, the cost for errors increases dramatically and time inefficiency arouses. It’s your responsibility to pay your sales-force on time and that’s like a reward from you to encourage them in placing more & more consultants. A misaligned sales commission process can adversely impact your sales team performance. So, when you have commissions to be calculated for multiple employees on a tiered rate structure or percentage payout (Flat, Fixed & Gross), it should be done in a very precise manner.

Leverage the TECHNOLOGY to manage your Automating Sales Team commissions EFFORTLESSLY

In reality, there are actually many tasks that we do need to automate because they can be done efficiently with a human touch and on Excel. But when it comes to sales commissions, it definitely needs to be automated. By which, it will not only lift that mountain of stress off your sales compensation accountant’s shoulders but the sales team will build healthy productivity and confidence. Eventually, you’ll say goodbye to over or underpayments, while making your sales team happier all around.

Automating Sales

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Here are few reasons why you should seriously consider investing more value and time in automating your sales commission calculation:

Errors Diminution

Calculating commissions in Excel creates a tremendous volume of errors and your valuable time goes on a toss. Surprisingly, many IT staffing businesses usually generate spreadsheets to calculate commission statements. Do you expect them to be correct and pain timely? No chance. Because there’s a fundamental belief that the manual tasks which are repetitive should be deployed under automation if not it’s like a demoralizing task. After all, we are humans and our accuracy alters how much ever excessive efforts are invested. Automation can solve this easily!

A well-structured automated commission system can reduce the errors at one shot and consequently saves a lot of money & time.

Related Article: 5 Different Types of CRM Software Available Online

Timely Commissions Payments – Automating Sales Commission

Manual sales commission calculation processes consume significant amounts of time and result in payment delays. Obviously, this causes reconciliation issues and dissatisfaction among the sales team. When you rely on an automated sales commission system, it allows you to calculate & process the payments as quickly as you want. Remarkably, calculations can be even done during the period to estimate potential payments and for accruals.

Double Data Entry Shunning

Automated Accounting software can evade you for a double data entry situation, allowing you to get the data directly into your commission system. A lot of time and effort can also be saved during this process.

Records Tracking

With comprehensive accounting automation software, you can track and manage your commissions’ payable, and reward a particular salesperson based on his/her performance. Simply put, replacing your manual calculations with automated record keeping provides you significantly more protection if you face any uncontrollable events like fire accidents, tornadoes, burglary, or a burst water pipe.

When you store records electronically and handle documents and files in the automated system, it becomes completely infallible. Having your records ready with a regular back-up considering protection during unexpected events.

Automating Sales Commission – Reducing Over Payments

Using Excel for calculating sales commissions can sometimes favor salespeople through overpayments – which might tend to go unreported. With a sales commission automating software, you can avoid overpaying your salespeople by calculating commissions accurately which in turn saves a significant amount of money loss.

Automating Sales

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Financial Resources Go Wasted

Incentives or commissions have a distinct impact on results and sales motivation. However, overspending on them with no additional productivity gain is a pure loss.

Without an ability to measure the commission, it’s just like a shot in the dark and you end up spending more on unproductive financial resources, which plunge in calculation errors and draining resources. So, it’s equally important what you spend or else it becomes vulnerable.

Good Reps Leave For Unpaid Commissions

Good representatives in your company may leave if you fail to pay them on time. So pay them the right amount at right time. Your commission goals are to be realistic and never have to be unfair or opaque. All this is rooted in the lack of automation, which otherwise can deliver you accurate and pay-outs timely. When a good rep leaves your company, it affects your process productivity and again you may look for additional resources, which need interviewing and training from the scratch. By which your hiring team’s workload may increase.

Constant Confusion & Back-and-Forth Discussions

No automation in sales commission calculations? Then, be ready to expect negotiations! Oftentimes, a lack of automation will not only lead to confusion, but also constant back-and-forth discussion, or even negotiation between sales and financial departments.

Let’s face the fact – it becomes a lot harder to argue all-time with humans than an automated system.

When humans bound to be responsible for sales commission calculations, the sales reps may feel that results go biased, which need to be audited, or else it could be influenced towards negotiation.

As a result, your sales reps may spend a considerable amount of time & effort in calculating their commissions own, and then compare with manually generated results.

After then, sales reps may engage in active efforts to negotiate regarding their commissions with your finance department. Make sure that both of your sales and finance teams receive pain at the end. In some instances, it may sadly result in the degraded relationship between sales and finance department.


The list goes on…So, what are you waiting for? It’s time – Switch to automation and simplify your entire sales commission process. Instead of relying on bulky file cabinets which are lined up in your office and intruding your commission calculation team into other space when flung open. The only necessary component would be automation.

Ready to experience the automation? Try Nimble Staffing.

Book a demo and get your sales commissions automated!


Rose Walker

My self Rose Walker. I am a Blogger and Writer. Writing is my Hobby and, I Love to write about Technology and Fashion related topics... Connected with Me on Social Media by Using Below Links:

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