Auction Technology Blog

Accounting for Auction Consignors

consignor_accountingThe auction is over. The buyers have all paid and picked up their purchases. Now it is time to reconcile with consignors and issue payouts. The consignors want their money as soon as possible, backed by an accurate statement for the sale of their consignments.

For many auctioneers, there is nothing simple about preparing consignor statements. It can be incredibly time-consuming and error-prone. Large auction companies often end up dedicating full-time staff just to handle consignor management and accounting. The complications involved in reconciling with auction consignors are usually the result of, or at least compounded by, poor data management.

When I speak with auctioneers about their businesses, I am often blown away by the type of juggling and hoop-jumping they and their team must do in order to settle up with consignors. It is fairly typical for auction administrators to have to gather information from different documents and software applications, then re-enter that information in a spreadsheet or accounting software, and sometimes even perform the calculations themselves. Not only does this increase the possibility of errors, but it also delays delivery to the consignor.

In response to these challenges, AuctionMethod has built a streamlined software solution that handles the job of creating consignor statements with far greater efficiency. The program compiles all of the required information in a single database, performs all of the necessary calculations, and automatically generates comprehensive statements. This is true even with complex consignor contracts that include sliding commission scales, minimum commission amounts, additional fees, and special terms for no-sales and buy-backs. It also allows auction administrators to easily edit, print, download, and send statements to consignors. Of course it also features payment tracking.

Click here to view a sample statement from our demo site at Liquid8Auction.com.

The technology I am describing is just a small part of the consignor management system that is built into AuctionMethod’s end-to-end solution for auction professionals. Contact us to see how you can put it work for your business.