Accounting for Logistics and Transportation Companies
Accounting for Logistics and Transportation Companies
Accounting and financial planning plays important role in success of business. Companies providing accounting and logistic are such as Good Transport company , Air Transport company , Logistics company. Such business have multiple clients and vendors running business at tuff competition. Hence managing correct accounting practices is important followed by cash liquidity. Due to change in oil prices profit margin of companies keeps on changing.
Finslog is provide outsourced accounting and bookkeeping services for Logistics and Transportation Companies. We help hep them to manage proper books of accounts. Proper bookkeeping helps in companies to make changes in business strategies to make business successful.
Rajat SRIVASTAV
Logistics
5 Stars
Logistics and Transportation may have various customer and vendors to run business. And consignment order are running day to day. Important part of business is to do timely reconciliation of accounts payable and accounts receivable.
2. Bookkeeping of Reimbursement Expenses
Under Logistics and Transportation Companies business model companies pay Government taxes, Customs duty , Warehouse charges etc. on behalf of clients. And Client reimburse such expenses to companies along with handling fees. Companies need to ensure that proper accounting practices followed for reimbursement of expenses.
3. Depreciation Expenditure
Owning Trucks , Transport vehicle , warehouse etc. is part of Logistics and Transportation Companies major expenses. These expense such a huge that companies need to pass correct depreciation entries for such expenses so that profit and loss , balance sheet statement is prepared as per accounting standrards.
4. Cash flow management
As per terms of agreement companies raised invoice at when delivery of goods is completed or handed over. The contract will outline the performance obligations expected of the shipping or transportation company. Also payment release cycle days are between 15-45 days. Logistics and Transportation Companies faces problems to keep liquid cash flow in company.
1. | Month End bank Reconciliation | Monthly |
2. | Month End Loan account Reconciliation | Monthly |
3. | Compare Actuals with budget of same month | Monthly |
4. | Review Billable and Non Billable expenses | Monthly |
5. | Month End Journal Entries | Monthly |
6. | Update Vendor Reconciliation | Monthly |
7. | Update Petty Cash Balance | Monthly |
8. | Raise Alert for Accounts Receivable exceeding 45 days | Monthly |
9. | Payroll Management | Monthly |
10. | Monthly Tax payments | Monthly |
11. | Monthly Compliances of TDS , GST , IT | Monthly |
12. | Month End Reporting | Monthly |
- Convert To Xero
- Software Setup
- Accounts Receivable
- Bookkeeping for CPA
Accounting Reports for Management
1. Compare Budget vs actual Expenses , income
2. Key Performance indicators of business
3. Monthly Accounts Payable Report
4. Monthly Accounts Receivable report
5. Cash Flow Report
1. Cash Flow Management
2. Timely Recovery of accounts receivable
3. Timely payment of accounts payable
4. Proper documentation of expense , reimbursement
5. Realtime financials
6. Key Performance indicator
7. Avail Cash Credit on timely payment