For companies that utilize commission plans for their salespeople, it’s important to have a trusted accounting firm on board. Although some companies are hesitant to outsource their accounting, there are some powerful benefits to be gained by hiring it out. You might think that commission plans would make it harder to outsource your company’s accounting. That’s a common misconception.
By outsourcing to an accounting firm that understands commission plans, your company can strengthen its ability to motivate salespeople and update its structures more regularly. You should look to partner with a company that uses cutting-edge technology. They should have expertise in your specific industry and they should also offer flexible but clear commission plan structures.
Here are a few ways that your company’s commission plans could benefit from outsourced accounting.
Get ahead with an accounting firm that can account and advise
Generic accounting firms used to be industry-standard. They typically served as the employer of record and helped facilitate payroll and invoicing. But times have changed, and it’s okay to demand more from your accounting firm.
Commission plans require a complex strategy in order to get the best results. When you work with an accounting firm that has industry-specific expertise, you enrich the power of your company’s commission structure. Don’t lower the bar and accept the bare minimum. Your accounting firm can and should do more than simply handle billing. They should be easy to get a hold of, and they should be flexible and responsive to your needs.
For staffing and recruitment agencies, commission plans should be front and center in strategic decisions. Choose an accounting firm that knows your industry inside and out. They should be able to handle all your back-end technological requirements, but they should also be able to advise you on the best ways to remain competitive. Go with an accounting firm that knows commission structures. They should be in touch with best practices and unafraid to suggest new ideas in collaboration with your leadership.
From the outside, it may seem like accounting is the same for every company across the board. While certain best practices are constant, it’s beneficial to have an accounting firm with industry-specific knowledge. You shouldn’t have to explain terminology to your accounting people when discussing the best options for compensating your salespeople. It’s much more efficient to outsource your accounting to a best-in-class firm that can help you stand out in your industry.
Simplified structures mean higher employee engagement
Sometimes, an overly complex commission structure can demotivate your salespeople. You might think that sixteen tiers would be more attractive because it offers more options, but unfortunately, that’s not necessarily true.
If you really want to motivate your salespeople, then make sure your commission structure is transparent and straightforward. Your accounting firm should work with you to help your team know exactly what milestones they need to hit. It’s even more motivating when salespeople trust that their commissions will come through quickly and accurately. You should consider simplifying your commission structure to less than four tiers. Not only does this clarify the plan to salespeople, but it makes it much easier to handle end-of-period accounting. It’s just like decision fatigue at the grocery store. With too many options comes apathy and an inability to make strong choices.
There’s a better option. Work with an accounting firm to simplify your commission structures and generate higher employee engagement. You might be surprised at how this inefficiency in your commission plan structure is affecting motivation.
Easily updated commission plan structures
On the one hand, your team needs to have high confidence and predictability when it comes to their commission plans. But on the other hand, it is absolutely crucial that companies take the time to update their commission structures according to the changing needs of the team as well as the competitive demands of the marketplace.
Every company should examine their commission plans at least on a yearly basis. Unfortunately, only 30% of companies update these structures annually. But this presents an opportunity for your company to excel. With responsive and annually updated commission structures, your company can remain more competitive and your salespeople more motivated. However, you need an accounting firm that is prepared to work with you. In-house accounting can sometimes slow down innovation processes, dragging their feet in the face of necessary changes simply because the paperwork is too intense.
To stay competitive, outsource your accounting to a firm that has both expertise in commission plans and the willingness to be flexible as your company grows and changes.
Cutting edge technology
It’s understandable that companies sometimes need to move slowly internally when it comes to adopting cutting-edge technology on the staffing and recruitment side. After all, your team needs to focus on the company’s unique value proposition. That’s where your company is probably devoting the majority of its resources and energy.
But if you’re not able to innovate in-house, then you should consider outsourcing your accounting. You don’t need to accept outdated accounting procedures that aren’t keeping pace with modern technology.
Look for an accounting firm that uses cutting-edge technology to deliver industry-leading results. Your outsourced accounting firm should be reachable via phone and email. They should employ smart data analysis tools and data dashboards to help clients understand their options. There’s no excuse for a miserable experience with accounting.
By outsourcing your accounting, invoicing, payroll, and commission plan needs, you can gain an advantage over other companies that are limited to in-house, outdated accounting methods. Gone are the days when the accounting department is stuck in antiquated and interminable processing loops. In order to stay competitive, your company needs an accounting solution that can hit the mark every time. Innovative technology like artificial intelligence should not only be reserved for product development or lead generation.
You deserve a responsive, knowledgeable, and trusted partner to manage your accounting. Contact us here at AdminAssist to see how we can help you streamline your company’s commission plan structures by outsourcing your accounting.