Given the high volumes of money logistics companies deal with regularly, making mistakes can cost them a lot in money, energy, and time. Unfortunately, these companies make mistakes, including mistakes with invoices and expenditure. Although they can use a freight auditing program to identify such problems and make some recoveries, even a robust program may not be able to efficiently hold a carrier accountable, navigate global supply chain complexity, and recover costs. Because of this, shippers must consider outsourcing freight accounting. They must recognize how a CPA in Brooklyn, NY can help improve their profitability. Outsourcing offers the following benefits:
Increased Financial Security
By outsourcing a shipper’s freight accounting needs, the supply chain can expect improved financial security. By allowing a third party to handle the payment process, a shipper can avoid making mistakes. Thus, they can be sure to pay invoices on time or pay invoices with accurate charges.
Proper Management of Carrier Relationships
When freight accounting is outsourced, carrier invoices are paid without any delay and errors. In addition, a shipper can maintain a good relationship with carriers because auditing can recapture total freight spending. Carriers work with third-party service providers that could mediate disputes. Also, by having a third party, the integrity of accounting increases, making sure all parties fulfill their obligations.
Higher Level of Transparency
Through an outsourced accountant, shippers and freight forwarders can expect full transparency in processes such as cost structures and verification. Also, they can obtain necessary transportation spend details that can help them when making decisions in the future. By partnering with a third-party accounting services provider, a company can improve its industry reputation by ensuring accurate and timely payments for its partners.
With a CPA’s expertise alongside the expertise of a shipper or freight forwarder, the latter can unlock fast growth. Outsourced accounting offers the prowess of the third-party provider and provides a shipper with more freedom to use resources toward market growth.
When FAP is handled in-house, the internal auditing team should grow with the business, incurring extra expenses to hire and train new employees. If outsourced, a CPA can handle scaling up operations, allowing a shipping company or freight forwarder to concentrate on business priorities.
Outsourcing freight accounting creates resiliency for constantly changing market dynamics due to lower overheads. Through the assistance of a CPA, a company can adapt quickly to changes in circumstances because it plans with partners ahead.