The Definite Need For Freight Audit in Logistic Business
Freight auditing has been creating a significance in the shipping and logistics industry. The freight audit processing includes the procedure of organizing and auditing the shipping data but generally, it is supposed to be a burdensome and time-consuming task. To sustain the existing market competition, outsourcing the invoice freight audit has become a prevalent concept.
What does the term ‘Freight Audit’ imply?
A freight bill audit is a process of examining the accounting, wherein, a firm verifies the freight invoice against the organisation ledger. A freight bill is also preferably known as ‘freight invoice’ and has a huge role to play in the logistics vertical.
The auditing process encloses the adjustments and verification to accomplish complete perfection and accuracy.
An invoice freight audit bill includes the following segments:
Your name and address
Invoice number for reference
BOL (bill of lading) number
Cost of the shipment
The overall cost of the shipment
Type of the freight used
Information regarding the shipper and consignee
Details associated with the quantity and weight of the shipment
Because of the bulk incoming of freight bills in a logistic sector, it is said that one out of every five bills consists of multiple errors. Most of the times, the errors in these invoice freight audits go unnoticed or unattended. This can have an adverse effect on the functioning of a logistic business. The manual freight processing involves greater time and challenges. And to limit these issues, outsourcing has become an effective trend.
To thrive the competition of the logistic business, a majority of the shipping companies consider three methods for an extensive freight – third-party logistics, manual review, and implementing invoice audit freight system.
Freight bill audit is a significant element of every logistic business and it is essential to detect the errors that might have occurred during the accounting process.
The most commonly occurred invoice freight audit errors include:
- Inaccuracies in shipping
- Delays in shipment
- Increase in accessorial charges
The successfully implemented freight audit process can bring more profitability for your business with the careful elimination of the data errors. This further reduces the involvement of unwanted labor costs.
Generally, a freight bill is placed under ‘pre-audit’ because the bill is audited before the payment initiative takes place. Poor quality in audit is directly linked to the ground roots of your logistic business, and therefore, even a small inaccuracy can lead to multiple hassles in your logistic business functioning. Most of the logistic startups or emerging firms are generally unaware of such complexities (the bulk of different charges, accessorial charges, rate indexes, and much more) which can cause inconsistencies in the billing process.
In-house or outsourcing?
Well, because of the lack of experienced professionals, logistics firms face drastic challenges in handling the invoice freight audit process. And hence, this competitive global business scenario calls for the execution of the outsourcing process.
Outsourcing the invoice freight audit process will endow you with the following benefits:
Inputting the significant data into the system for enhancing instant analysis
Verifying the audit bill and checking out for errors and inaccuracies
Making the best use of audit software for generating precise results
Helping your business to formulate strategic decisions
Experiencing the consistent and in-depth auditing process
If you are into a logistic sector and if you haven’t yet approached the concept of outsourcing the invoice audit, this is the right time to take the beneficial initiative. NexGen Logistic BPO has acclaimed the name of being the best global offshore service provider of freight audit processing services. For further details, you can reach out to our team at email@example.com