Since most insurance agents work on commission, tracking these figures is essential. With modern technology, you no longer need to track commissions manually.
Even something as simple as a spreadsheet is an improvement over a piece of paper. But using the right commission tracking software will make it even easier.
Why Commission Tracking Matters
Commission tracking is just as important as tracking payroll in any other company. You need to track accurately commissions to know how much your agents make. You will also need it for your overall accounting and bookkeeping. After all, monitoring commissions lets you monitor your payroll expenses.
Overall, tracking commissions leads to a few crucial benefits for your insurance agency.
It Keeps You Organized
Commission data is just one of the many types of data that your insurance agency needs to track. Keeping your data organized makes it easy to find the information you need.
This organization benefits your agency as a whole as well as individual agents. Sales representatives can see all the commissions with ease. They can also use this information to more easily spot if a client cancels their insurance policy without letting your agency know.
It Lets Agents and Agencies Plan Financially
On a personal level, having access to commission dates lets your insurance agents estimate their upcoming commission income. This can help them make sound financial decisions. This also applies at the agency level, as it can help you determine if your agency is ready to grow.
It Helps with Lead Management
Viewing commission data can help your team determine which strategies work best. For example, the data can show when agents acquired the most clients. Managers can then pinpoint what agents did to bring in those leads.
It Helps Spot Missed Payments
In addition to letting agents see if a client cancels, tracking commissions lets your team see if a client is late with a payment. Agents can then contact clients with missing payments to send reminders. This helps improve your agency’s cash flow and x..==build client relationships.
It Reduces Human Error
Perhaps the biggest advantage of using commission tracking software is that the software will automatically complete the calculations for you. This reduces the risk of human error when making the calculations. If you were to do everything by hand, there would be plenty of room for error.
Even if you use a spreadsheet or something similar to track commissions, human error is a possibility. After all, someone will have to enter the numbers into the spreadsheet. But a commission tracking system that connects with the rest of your agency management software will automatically enter the data for you. This reduces the risk of error.
It Saves Time
Commission tracking software also saves your team time. They won’t have to spend time entering data or calculating commissions, as everything happens automatically. Instead, they can use their time for other tasks, such as continuing education, contacting clients, or researching insurance policies for clients. This will improve your agency’s efficiency and save you money. It can also improve customer service.
What to Look for in Commission Tracking Software
As mentioned, you could start tracking commissions in a spreadsheet, but the best software has many more features than just the basics you could do in a spreadsheet.
Commission Percentages
One of the most important features of commission tracking software is the ability to set percentages. You should be able to set percentages for both users and for companies. From there, the system should automatically calculate those commissions.
Easy Access
You also want the commission tracking to be highly accessible. For example, Jenesis has the commissions come in through your downloads.
Reporting
The best programs will also give you reports on commissions. This is essential for your bookkeeping as well as for tracking profits. It can also help you see trends as to which of your agents are bringing in the most money. Or you can use the reporting to view trends over time.
3Integration with Other Systems
Ideally, your commission tracking system will easily integrate with the rest of the software your team regularly uses. It is even better if everything takes place in the same insurance agency management software. This ensures that your team doesn’t have to input data into the commission tracker, as the system can just import it from the agency management system.
Conclusion
Most insurance agents are paid through a commission model. As such, commission tracking lets agents know how much they will be making and assists with your agency’s payroll. Tracking commissions is easier through software, which helps prevent human error and saves time. The software also gives you access to commission reporting that can help you spot trends and plan for agency growth.