For many business owners, tracking commissions boils down to creating a spreadsheet, entering data, and calling it a day. This manual entry method has been used for many years across all kinds of industries, but if you’re still creating a spreadsheet for commission tracking by hand, you may be setting your company and your team up for trouble.
When you manually create a spreadsheet for commission tracking, the likelihood of errors increases a lot. Aside from human error, you may also experience issues with the spreadsheet itself. If you are looking to generate spreadsheet for commission tracking, visit this website.
If you’re using software, the software may tabulate the numbers incorrectly if it has been set up for general use. Furthermore, a paper spreadsheet is prone to legibility issues and damage or loss, meaning you could lose your data entirely.
What’s the Alternative?
Instead of manually tabulating commissions, consider using specialized commission software that has been designed for your industry. This type of software typically allows for customization based on your business’ needs, and you can often enter basic information about each sale to generate full commission reports.
Commission tracking is a feature of many commission software titles found today. This takes much of the guesswork out of budgeting as it can show you precisely what you will be expected to pay in commissions based on the time frame you choose in the software setup.
Archiving Your Commission Spreadsheets
No matter how you create commission spreadsheets, you’ll want to think about how they will be archived. Different industries have different regulations regarding how financial data must be stored and for how long. This may require consultation with your legal department to make sure you comply with industry regulations.
You may also have a specific length of time that commission reports must be saved for. This can vary by industry, but a good rule of thumb is to keep records for at least seven years. This may also be a tax liability issue, so speak with your accounting team to learn more about your obligations.
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