The freight forwarder business continues to become increasingly automated. This trend results from technological advances in software applications and developments in artificial intelligence and machine learning. For freight forwarders, these advances are welcome news. They create efficiencies that offer opportunities for competitive advantages and increased profitability. Accounting software for freight forwarders provides many of these opportunities.
Freight forwarders who effectively utilize these accounting applications stand to fly above less advanced competitors, providing better service at lower prices.
Freight forwarder software provides many advantages, including enhanced general ledger capabilities, automated invoice control, flexibility, enhanced P&L analysis, increased transparency, useful templates and more efficient regulatory compliance.
Enhanced general ledger capabilities
General ledger capabilities are crucial to the universal Generally Accepted Accounting Principles (GAAP) and always will be. Accounting software for freight forwarders offers the most effective method for analyzing financial performance. As the business becomes increasingly data driven, freight forwarders continue to identify ways to increase profits, such as through automated vendor selection that quickly contracts jobs to the lowest cost freight company that suits predetermined criteria. Enhanced general ledger capabilities allow freight forwarders to better identify other cost saving opportunities through improved insights. For example, through the software’s ability to peg expenses to cost centers that are otherwise unclear, freight forwarders can use this insight to more accurately determine rates.
Automated invoice control
Contracted freight rates are just one part of the equation. Brokerage charges are also a key facet of profitability. Enhanced general ledger capabilities help identify opportunities for more accurately determining freight rates. Many times, this analysis leads to the conclusion that certain charges need to be applied to customer accounts. Automated invoice control prompts users to add appropriate items to invoices for specific situations, opening opportunities to enhance profitability.
Freight forwarder software boosts flexibility, a key advantage in accounting scenarios. As operational scenarios change, accounting procedures must also adjust. Accounting software for freight forwarders makes this possible with enhanced flexibility of divisional overrides and general ledger accounting, plus ease of adjusting to changing operational processes.
Drill down capabilities for P&L
P&L statements demonstrate the financial health of a business or a lack thereof. Periodic broad view P&L reviews do not provide the level of analysis needed to compete against technologically advanced freight forwarders. Freight forwarders that employ accounting software have the ability to conduct granular analysis that identifies revenue potential of shipments that can be applied directly to the bottom line.
Today’s technology makes it possible for freight forwarders to offer their clients access to the operational process through cloud computing applications. Clients can see key shipment or clearance milestones, an offering that increases client satisfaction and provides a competitive advantage. For example, customers can receive notification when shipments clear customs. This value add makes clients willing to pay more and even helps speed remittance.
Accounting processes are most successful when they speed the rate of billing. As in most industries, cash flow presents challenges to freight forwarders. Freight forwarder accounting software provides templates for repeat business that routinely uses the same flight, route or trade line, speeding billing and increasing cash flow.
Regulatory compliance may be a must but spending inordinate amounts of time and money on it can be avoided through freight forwarder accounting software. The software can automate many of these processes, such as submission of duties through the Automated Clearing House. By decreasing regulatory compliance headaches, freight forwarder software helps shipments arrive sooner.
Establishing accounting divisions allows managers to gain a granular view of business lines and regions. This opens opportunities for cost control and enhanced operational efficiency. In addition, managers can identify areas of concern much earlier and enact less costly corrective actions.
To often, freight forwarders are hampered by an information gap between accounting and operations, which often results from data silos. Freight forwarding accounting software integrates accounting and operations, which allows for smooth communication and provides management with an overarching view of the company’s performance. As freight forwarders continue to modernize, they enjoy increased competitiveness through automated processes.
As technology advances continue, freight forwarders that utilize accounting software stand to benefit. They gain the ability to thrive on thinner margins while increasing delivery speeds.
CSA’s Software’s Account-Trak software for freight forwarders is specifically designed to work with World-Trak freight management TMS software. It eliminates the problems associated with accounting integration. As a cloud-based integrated transportation accounting software system that integrates seamlessly and accurately. Call CSA Software today to learn more about our freight forwarding and logistics software and get started with a Free Demo!