Are You Keeping Account of Your Finance?

Logistics and freight companies are jumping head-on into the digital race to keep fit in today’s ruthless market which punishes any business showing even a hint of slack. There is clamor among companies to digitally equip themselves in this technology-driven era.

The market is flush with software solutions for freight, warehouse and transport management—the three main services of the logistics business. Available are individual applications serving the needs of freight, warehouse and transport management to integrated solutions and single software for logistics.

Logistics and freight companies invest a major part of their time scouting for solutions best suited to their operations and rightly so. But sometimes companies focus on operations too much that the financial and accounting part gets sidelined. This can prove to be a costly mistake in the long run.

Freight and logistics companies usually incur a number of expenses on behalf of their customers. As shipment cycle can take days or even weeks, it is easy to lose track of these expenses if they are not recorded properly and immediately. The usual practice is to note down the expense or maintain an expense sheet and pass it on to the accounting team for recording. The margin of error is high in such cases causing loss of revenue.

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Imagine a software in which finance and accounting is an integral part of the solution. It facilitates booking of charges/expenses at the exact stage and time they are incurred. This is exactly what a single software for logistics which covers the entire logistics life cycle from inquiries, sales, operations to finance and accounting does. As charges/expenses are booked at the point that they are incurred, the entire financial and accounting process becomes automated. Invoices can be raised automatically without mistakes and payments can be followed up easily thereby preventing revenue loss.

Since booking of payables and receivables are automated along with the invoicing, the accounting process is simplified. With its full-fledged integral accounting system tightly knitted with operations and sales, the single software allows for easy management of credits, cash flow, tax compliance and payment cycle, enabling greater financial control. The financial accounting system automates and simplifies the taxation part for the freight and logistics business.

Logistics and freight companies need to keep in mind that while it is important to give much consideration to the logistics operations it is equally important to keep account of the finance. Companies can pay a heavy price if they compromise or neglect the finance and accounting part while selecting a software for their business.

Originally Published in Portcalls Asia Magazine

https://www.portcalls.com/are-you-keeping-account-of-your-finance/