Commissioned Sales People
Moving & Storage Company
The Situation
- Owner struggled to track commissions earned vs. paid
- Sales team was frustrated due to wide variations in cash flow from one pay period to next
- Bookkeeper had to reconcile accounts and correct discrepancies causing distrust between sales force and office staff
The Solution
- Transitioned all commissioned employees to bi-weekly draw with quarterly bonuses to smooth cash flows and simplify payroll reporting;
- Created one custom report for office manager, owner, and sales force to review and track performance;
- Eliminated non-value adding administrative tasks.
The Results
- Increased overall efficiency by 4 man-hours per week.
- Enhanced clarity and comprehension for all parties
- Minimized administrative workload.
Recent Articles
Using Tomorrow’s Job to Pay Yesterday’s Subs
All too often, businesses find themselves using tomorrow’s job to pay yesterday’s subs. This can result in a never ending feedback loop …
How to plan for the impacts of inflation on small business
There is a lot of talk these days in the media about inflation, and since it is a part of normal economic …
When do you capitalize an asset?
Photo credit: Pickawood Sometimes the best topics to discuss here are the ones we, as accountants, overlook. Recently, our marketing consultant asked …