[WHITE PAPER] The Complete Guide to Freight & Transportation Accounting
NOTE: Use the Form Below to Download the Transportation Accounting White Paper.
As you grow, so should freight costs. However, it’s important to review your pattern of freight spend in relation to sales so that you may set a benchmark. Above average increases in freight costs could indicate your expenses are cutting into your bottom line. This is why it is vital to understand, master, or outsource managed transportation services, such as freight and transportation accounting. When your freight spend becomes a significant percentage of your total revenue, it starts to have a negative impact. To put it in perspective, if you average $1 million in annual sales, imagine the impact paying or saving an additional $10,000 a year in transportation could have on your bottom line?
Typically, according to the 22nd Annual “Masters of Logistics” study, results confirm that transportation costs increased at a brisk rate from the previous year. Companies who spent more than 5 percent of sales on domestic transportation grew from 26.8 percent to 30.9 percent from 2012 to 2013. While this shift was noteworthy, the largest swing occurred for those companies that previously had been spending 1 percent to 2 percent of sales on transportation and are now spending 2 percent to 3 percent, representing a 26.3 percent increase in the companies in this spending category—a difference that can translate into millions of dollars.
As a logistics or transportation manager who must interface with your accounting or finance department, controller, CFO, or even the owner in the business where you manage freight, the more you know about freight and transportation accounting, the more likely you are to internally collaborate or work with a logistics service provider to more strategically drive out costs and run an efficient transportation department.
Get Instant Transportation Accounting Help through a Transportation Management Partner
The initiative to implement a best-practice transportation accounting solution enhances your existing accounting automation initiatives, letting you receive reliable freight accounting data from Cerasis’ proprietary freight management software and services without the work and the headaches of manually keeping up with multiple freight invoices.
By employing proper freight accounting, through freight payment, auditing, and consolidation services, according to Inbound Logistics a shipper can go from paying $11 per freight invoice, all the way down to only 5 to 10% of the $11. Additionally, by using Cerasis transportation accounting services, a company can save 2 percent to 5 percent of their total freight bill by catching inaccurate charges or duplicate payments.
Download The Complete Guide to Freight & Transportation Accounting White Paper
If you are looking to better understand how transportation costs fit into your business and make better informed decisions to wrangle ever increasing transportation costs, this white paper is for you. In this white paper, readers will learn:
- Freight Audit Automation vs. The Manual Freight Audit
- The Benefits of Freight Audit
- What is a Freight Bill vs. a Bill of Lading
- What is a Bill of Lading, the Importance Of, Error Consequences, and Effective Solutions
- 3 Ways to Make your Freight Invoice Work for You Not Against You
- Accessorials: What Every CEO & CFO Should Know
- How Implementing a Consolidated Freight Invoices Program Will Make You a Finance Department’s Hero
- Freight Bill Post Audit Vs. Freight Bill Pre-Audit: Benefits, The Difference, and Why They’re Both Important
- Accounting For Freight Costs: Freight Expense Account vs. Cost of Freight-Sales Account
Fill out the form below to download the Transportation Accounting white paper: