Category: Industry Accountants

How Transportation Companies Can Take Advantage by Utilizing an Accountant That Specializes in Their Niche

Transportation industry and car transportation companies are most prone to fluctuations in their variable costs due to frequent variation in fuel prices. Accounting for transportation companies, for this reason, gets complicated often times. Accounting for a business in itself is an entirely different field of work and requires thorough understanding of jargons and other concepts to be able to enter transactions and do the bookkeeping.

Even after studying the basic principles of accounting, it is advisable to hire an accountant for your business. An accountant will be of immense assistance in improving your transport business and achieving your goal of profit maximization and expense minimization. Given your field of work, an accountant can help you in the following ways:

  • Bookkeeping: An industry specific accountant will keep close tabs on all invoices, bills of lading, purchase orders, driver logs, fuel tickets, timesheets and other relevant shipping documents. Along with audit of invoices at transaction level, the accountant will also book the entries for all your transactions. This transactional level audit will ensure that no errors are made such as incorrect freight charges (over-billing or under-billing) and help you maintain the budgeted revenue. Other documents regarding vendor information, consignment, rate contracts will also be maintained and entered into the accounting system by the hired accountant. All this hectic procedure and processes managed by a third party accountant will spare you more time to focus on business growth and expansion.
  • Expense minimization: An accountant that has worked with several clients in the industry has a vast experience in regards of management of cost of goods. They will assist you in analyzing your fixed costs as well as variable costs and plan a better strategy for your cost management to reduce as much expenses as possible. A specialist accountant in your niche is equipped with the necessary knowledge to analyze all relevant deductions for interstate travel, car transport Melbourne to Brisbane for example that general accountants cannot identify. An account in your business niche is also well-equipped with taxation policies and will ensure to claim as much tax breaks (deduction, tax credit or tax rebate) as possible in your stance. Getting your tax returns filed with an accountant specializing in your industry will benefit you immensely in respect of minimizing expenses.
  • Reports and analysis: Due to a serviceable exposure to the transport industry, a third party accountant will not only maintain your books and accounts accurately but also prepare analysis and reports on changes and trends in revenue and strategies to improve your business processes. They will see to it that you get the best carriers, discounts and best quality suppliers in the industry. A variance and financial analysis will also be performed to compare and measure your business performance as compared to other transportation companies which will assist in a better financial planning.
  • Technological assistance: Third party accountants also facilitate up to mark technological equipment and accounting software for their clients like transport management system (TMS). TMS is a platform that lets you manage and optimize the daily operations of your accounting fleet. This will eventually lead to fewer errors since it manages the major tasks such as planning, execution and optimization of movement of goods by the transportation fleet.