One of the biggest draws for motivated sales reps in the contracting industry comes from the potential to make serious money, and fast. The common pay incentives can excite salespeople to really push themselves, knowing that a six-figure paycheck is not out of reach, especially during high volume production seasons.
While every roofing company sets its payment commissions differently, the most common criteria for calculating commissions are either as a percentage of the contract amount or as a percentage of the job’s profitability. According to The Roof Strategist, the average percentage of the contract amount typically falls between 7% and 12%, while the average percentage of the job’s profitability ranges between 30% and 50%.
Using this industry standard, AccuLynx allows your bookkeeping or accounting teams to set up your company’s roofing sales commissions through individual Job Files, while helping you calculate the job’s profit through the information shared via our QuickBooks or Sage Intacct integration.
By taking the time to understand how your company’s commission structure operates and incorporating that structure within AccuLynx, you ensure there are no mistakes when it comes to paying your employees what they have earned, as well as understanding the full financial picture of every job you contract.
Two ways AccuLynx handles roofing sales commissions
Pre-Commissions: Many companies have a system in place to keep cash in their sales reps’ pockets by giving them a smaller commission when they turn the job in. This is typically calculated as a draw against their future anticipated commission when the job closes out.
Commissions Calculator: You can also use AccuLynx to customize your roofing sales commission rules to account for different payment plans, or if you have different members of your team whose compensation plan is tied to overall job performance. These Management Overrides come in handy, especially when you’re paying commissions to individuals who aren’t selling, but rather acting as General Manager or Project Manager on the performance of the jobs they supervise.
Benefits to adding a commission structure
Salespeople know what they’re being paid: If you have a specific company commission structure, this can be difficult to understand or manage, especially during high-volume production seasons when you might bring on seasonal sales teams. By creating roofing sales commissions in AccuLynx, your sales reps can see what they’re earning on a per-job basis, as well as the ability to go through all of their accounts and see historically what they have made year over year. This can motivate sales teams even more, as AccuLynx handles the work of compiling that data for them to find.
Commissions fill out the story of a job: Since commissions are created within each Job File, management and accounting can see a better overall picture of where and how money was paid out. Commissions payouts can also allow owners to lower their minimum overhead when it comes to cash flow.
Learn how AccuLynx can help your business
To request more information on setting up your QuickBooks or Sage Intacct tags for Commissions, contact the AccuLynx Help Desk at support@acculynx.com or call (608) 473-3800.
4 Comments. Leave new
Hi- I’d like to learn more on how this feature works.
Hi, we would love to learn more about this feature
how do you move jobs from the approved commission column to the paid column?
Hi Linda – Please reach out to our support team. They’ll be able to walk you through exactly how to manage your jobs in AccuLynx. Here’s the link to contact them: https://acculynx.com/support/.