Who Should Own Sales Commissions: Finance or Sales Ops?

In growing companies, one question tends to linger in the background until it suddenly becomes urgent: Who should manage sales commissions? Get it right, and your sales engine hums. Get it wrong, and you’re fielding complaints and risking missed targets.

There’s no universal answer, but the right decision depends on your stage of growth and what you value most. Let’s unpack how the ownership of commissions typically evolves, and what to consider when choosing between Finance and Sales Operations.

How Commission Management Evolves as You Grow

In an early-stage company, one of the founders usually handles commissions alongside other responsibilities. It’s often the founder who’s closest to the numbers or most involved with sales.

Once the sales team grows past a handful of reps, a finance professional usually steps in. This person is often responsible for payroll, reporting, and budgeting – and commissions naturally fall into their scope.

As the team expands further, especially beyond 100 reps, Sales Operations may become its own function. At this point, some companies keep commissions under Finance, while others hand the responsibility to Sales Ops. There’s no uniform approach here. The right choice depends on how each team is structured and what systems are in place.

At the enterprise level, when a company is paying commissions to thousands of people, a dedicated team often takes over. In these environments, compensation is complex enough to justify its own unit.

When Finance Should Own It

Finance brings structure and oversight, which can be ideal for managing commissions – especially in companies that prioritize financial accuracy.

Some advantages of having Finance manage commissions:

• Payroll and commissions often need to be aligned in timing and process.
• Finance teams typically build and maintain the spreadsheets that track payouts.
• They’re responsible for financial reporting, including commission accruals

This setup tends to work best in organizations where commission plans are relatively stable, and the main priority is ensuring payouts are correct and compliant.

When Sales Ops Makes More Sense

Sales Operations is focused on driving sales efficiency. Their close connection with the sales team gives them an advantage when it comes to managing commissions with flexibility.

Why Sales Ops can be the better fit:

• They often lead automation efforts and look for ways to eliminate manual work.
• Their proximity to the sales process allows them to adjust incentives in response to shifting goals.
• Many Sales Ops teams manage the systems where sales activity is tracked

For companies that want commissions to be part of a broader sales performance strategy, Sales Ops offers both the visibility and the tools to do it well.

How to Decide: A Practical Framework

If your company is in the mid-range – somewhere between a few dozen and a few hundred commissionable reps – you’ll likely face a choice between these two paths.

To decide, consider the following:

• Which team has the infrastructure to manage commissions accurately?
• Who has more context on the sales organization’s goals and structure?
• Do you need more focus on compliance, or on alignment with sales behavior?
• Which team has the capacity and technical expertise to scale the process?

Scoring each of these questions based on relevance to your business model can help make the decision more objective. While it won’t guarantee a perfect outcome, it will highlight which direction makes the most sense for your current stage.

Final Thought

Commission management isn’t just about numbers; it’s about creating a system your sales team trusts. Whether it’s run by Finance or Sales Ops, the goal is the same: Accurate payouts that support performance and reflect your company’s values.

Choose the structure that brings both clarity and momentum to your sales organization.