Pack Your Bags: CompCloud Is on a Road Trip!
This week we took the world’s leading incentive compensation management conference, CompCloud, on the road. Our first stop, Boston! Sponsored by Salesforce CPQ and Canidium, the inaugural event welcomed a packed room of compensation specialists, sales ops pros, and finance leaders to discuss how companies can continue to innovate and transform their sales compensation processes and strategy.
Throughout the event, speakers including our founder and CEO, Christopher Cabrera, discussed new approaches for using data intelligence and incentives to motivate and improve sales performance and align behaviors with company goals. To that end, partner Canidium and customer Addison Group shared how the company modernized their incentive compensation initiatives with Xactly—resulting in a 90 percent reduction in processing time and eliminating 600+ weekly emails.
Getting Ahead of ASC 606
Central to the discussion was also the Giant Elephant in every compensation room. The new ASC 606/IFRS 15 revenue recognition standard goes into effect at the end of this year for public companies, and next year for private businesses. Despite a long runway, the vast majority of businesses are still unprepared for ‘subtopic 340-40,’ more commonly known as the costs of obtaining a contract. Although this represents a small portion of the standard, it’s of enormous importance for businesses that pay commissions and need to be GAAP compliant. To comply with the new commission expense accounting rules, companies must: track direct and incremental costs for each contract; capitalize those costs as an asset; and estimate the amortization period and record it over that term.
The event created an open forum to discuss the obstacles and opportunities around the standard and how companies can prepare for the granularity and accuracy necessary to meet the new requirements. Xactly customer Nina Ostrom, senior director, global sales ops – incentives, also shared what steps Akamai has taken to get ahead of the game.
Download the guide, "Commissions Expense Accounting Under FASB ASC 606," to discover how to comply with the new accounting standard.
Up-Leveling Your Sales Compensation Strategy
The remainder of the day was packed full with sessions and discussions on how companies can drive next-level sales compensation and improve results. From up-leveling sales compensation intelligence with Insights for Sales to territory optimization with Xactly AlignStar, attendees walked away with new strategies to rev up their sales compensation planning as they head into 2018. Next up on our CompCloud on the Road itinerary is a pit stop in Austin! Check back here for updates on dates.