Commission software vs commission spreadsheets, it seems a common debate that may have finally come to an end. Every company and business is always striving to look for new ways to improve payments and analysis of commissions. This is because a lot has to be put in place for accurate commissions to be calculated.
Let's focus on how commission software has proven to be better than excel spreadsheets when it comes to calculations and analysis of commissions in a business. This piece also explains the downfalls associated with Excel spreadsheets and the reasons why you need to avoid using it for the management of commissions in your business or company.
Commission software vs commission spreadsheets; the differences you need to know
A lot of small business owners opt to use spreadsheets rather than other commission software. Despite some favoring spreadsheets, commission software is still in use by most businesses because they offer superior services.
Commission spreadsheets in excel deal with a particular thing on a list. Commission tracking software can easily do all of them at once. It facilitates the automation of work, thus becoming efficient when the work volume is huge.
The software is designed to provide an easy track of history. All these and many other features make it better than spreadsheets to a considerable extent.
Aspects associated with commission processing in spreadsheets and commission software
According to a study, about 80% of the organizations face problems when it comes to payment of accurate compensations to their employees when using spreadsheets. Here is how commission software can compare to commission spreadsheets in terms of workflow.
Accuracy
Commission spreadsheets are frequently error-prone. About 88% of the sheets contain some form of error. These errors originate when data is being keyed in. One may enter the data wrongly or even forget to save the data entered. This will quickly lead to the formation of multiple errors.
For your company to reduce the making of these errors, you need to use sales management software to manage commissions. Commission software has fewer errors and is designed to reduce the occurrence of them by easing calculations too.
The data needed for calculations is set up at once, therefore, removing the need for constant entry of calculation formulas into the system. Editing the total amount paid and percentages become easy.
Commission spreadsheets can easily mix up work with a simple wrong click. This may result in the loss of initially entered data. The manual input of data makes it even worse as you need to set up all calculations you intend to work on. Excel is good for just small and straightforward calculations.
When the work is huge, it's advised to opt for a commission software for processing.
Speed and time
Excel spreadsheets take more time to process commissions compared to software. It is difficult for you to analyze data on excel as more time is consumed when creating and editing a spreadsheet.
Under other circumstances, errors may become acceptable as some of your employees may have disputes with you after noticing errors in their pay. You wouldn’t want such a scenario for your company. Try using sales management software to eliminate such occurrences.
A lot of time is saved when you opt to use sales software for commissions since you don’t have to go through the work manually. Everything is done automatically. Your employees can focus and spend more time doing other work related to sales rather than wasting time dealing with shadow accounting. This will benefit the company directly even more.
Versatile vs. restricted analysis
We have discussed the primary importance of software in ensuring accurate payment of your employees’ commissions. Now let’s take a look at how the same software can be used to analyze information.
Making analysis is an integral part of any business. It helps you determine the direction your business is going.
Excel spreadsheets are time-consuming and difficult to use for analysis. Commission software, on the other hand, will give you detailed graphs which will help you identify the best sales and also employees who need motivation based on the sales they make. With all that information, you can quickly determine where your business stands and what to improve on.
In conclusion
Commission software has proven to be better than excel spreadsheets. Companies are now able to easily monitor their developments, make a prediction on the sales to be made in the future and scrutinize the outcomes of any renewals and still maintain focus on the goals of their company.
Overall, we can summarize that commission software is by far better the spreadsheets as it will give you improved efficiency for your work no matter how big your business is.
Before you make a decision on the type of commission software you wish to use, remember to ensure it does the intended purpose. Others may offer reduced services for you, but with Blitz, you can set up commissions plans tailored to your specific compensation scheme, no matter how simple or complex.