Any growing business runs on sales reps. Nonetheless, let us face the truth, on the matter of keeping tabs on what they have earned, it is easy to get slushy very soon. Excel sheets are stacked. It does not add up. And then there is this all-star salesperson getting cranky because a calculation was done wrong on a commission.

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Therein lies the relevance of a simple, easy to read and a tethered commission tracking sheet.

In the current competitive environment where performance-based incentives are the order of the day, sales commission tracking cannot be viewed as an accounting activity only, but rather as a measure to build trust. When the sales teams are aware of being compensated correctly and within due time, they work better. Here in this blog we are going to demonstrate how to create a seamless system with ready to use sales template, give you a tour of the top practical tips to avoid the big mistakes, and offer you a free commission tracking sheet that you can customize immediately.

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A sales commission is the amount of money that is given to a salesperson according to how much revenue he or she brings. The compensation model in the company can be based on percentage or a tiering structure in terms of reward.

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Commission structure often acts as the main incentive of the sales reps. A recent study, revealed that salespeople with a clear demonstration of their commission plans have a 56% higher chance of meeting the targets. The issue here is that when such plans are not effectively tracked then it leads to no payment or conflicts arising.

This is why a clean and organized sales template that will allow us to manage commissions is not only useful but also necessary.

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A commission tracking sheet is simply a sales tracker which tracks the following:

• Name of Sales rep

• Name of deals or transactions

• The price or sales value of a deal

• Count rate or percentage

• Commission total receipt

• Paid/pending status Payment status

• Notes or special modifications

Regardless of whether you are working with Google Sheets, Excel, or a cloud-based CRM solution, an effective sales template will save you the time of executing the back and forth multiple hours and enhance the level of financial transparency on all levels.

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1. Enerrors in the manual entry

There is human error in spreadsheets. Several payouts can be unbalanced due to a wrong decimal point or an old formula.

Fix: Apply a template that would have drop-down menus and in-built formulae to minimize errors.

2. Version control deficiency

The use of different files by various managers will lead one to lose track of the up to date update.

Fix: Place your sheet tracking commission information on Google Sheets or shared drives with viewing/editing capabilities.

3. Wrong commission rates

When your reps are not aware of how their commissions are worked out, or when the policies keep on changing, the element of trust is lost.

Fix: Add logic of commission rates into the template and revise it with every quarter.

4. Non-uniform pay out schedules

Employees get frustrated with tardy payments and it kills morale.

Fix: Automate the due dates on the payments on your sales template and approvals.

5. Non audit trail

A record is necessary to prevent regards over misplaced commissions turning into HR nightmares.

Fix: Include notes/ comments in the template of each transaction to monitor changes or exception.

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Commissions are easily monitored, thus the salespersons feel in control, the managers feel in control, and the businesses will remain compliant. The proper sales template would not simply organize numbers, it creates trust. And performance is equal to trust in sales.

By downloading the free commission tracking spreadsheet found in this blog, you will get one sure step closer to trouble-free payouts, contented teams and precise forecasting. Make it simple. Make it open. Make your reps hunters; not number-chasers.

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Frequently Asked Questions 

1. What is commission tracking sheet?

Overview A commission tracking sheet is an aid typically a spreadsheet that assists a business to track, calculate and interpret the levels of commission due to the sales team of the company depending on their performance or sales. It guarantees clarity and precision in the payments.

2. Why should we use a sales template instead of using manual calculations?

Manual tracking is subject to human error as the sales increase. A built-in sales template reduces errors, makes work consistent and time-saving due to the calculation process and organization of data records.

3. Is it possible to modify the free commission tracking sheet to my business?

Yes! The commission tracking sheet provided in the blog can be customized fully. It allows you to modify it to fit flat-rate commissions, tiered commissions, or percentage-based commission, add or remove fields and configure it against your sales cycle or KPIs.

References

1. Xactly. (2023). Why Accurate Sales Compensation Data Matters.
   https://www.xactlycorp.com/blog/why-accurate-sales-compensation-data-matters

2. Forbes. (2023). How To Use Automation To Simplify Sales Commission Management.
   https://www.forbes.com/sites/forbestechcouncil/2023/10/09/how-to-use-automation-to-simplify-sales-commission-management/

3. HubSpot. (2024). How to Create a Sales Commission Structure That Works.
   https://blog.hubspot.com/sales/sales-commission-structure

4. Spiff. (2023). What is a Commission Tracker?
   https://www.spiff.com/blog/what-is-a-commission-tracker