Freight accounting teams often find themselves overwhelmed with the sheer volume of tasks they need to manage. From processing numerous invoices to dealing with frequent discrepancies, the life of a freight financial specialist can be exhausting and stressful. The constant pressure to ensure accuracy while maintaining control over costs (without losing one's sanity) can feel like an uphill battle.
In this post, we will explore how a Transportation Management System (TMS), like MyCarrier with its MyInvoiceHub tool, can revolutionize freight accounting. We'll look at how it can help reduce errors, provide real-time visibility, and enhance operational efficiency. Whether you're a logistics manager, shipping accountant, or finance executive, you'll find valuable insights here to boost your team's productivity and accuracy.
The Burden of Manual Processes
One of the major challenges faced by freight accounting teams is managing manual tasks, which often lead to errors. Endless spreadsheets, manual entry, and heaps of paperwork are common culprits. This manual approach not only eats up time but also increases the risk of human error. Consider the task of manually comparing invoices with Bills of Lading (BOLs)—a tedious job that often leads to inaccuracies if done manually.
A recent study revealed that freight accountants spend an average of 3.4 hours per week auditing freight bills, costing about $77 per 50 shipments. This time and money could be better spent on tasks that add value to the business rather than managing spreadsheets and digging for possible overcharges. The inefficiency of manual processes can also lead to burnout among employees, affecting morale and productivity.
Hidden Costs and Freight Bill Discrepancies
Did you know that the average freight bill error rate in the industry is more than 15%? This means most shippers are unknowingly overpaying for shipping. In fact, 1 in 4 freight bills carry unplanned accessorial charges. If these bills are not audited properly, businesses risk overspending, negatively impacting their bottom line.
The lack of a single source of financial truth makes it difficult for companies to know what they truly owe their carriers, leading to potential overpayments. Without a proper way to identify variances, these errors can accumulate, causing significant financial losses over time. A robust freight audit tool is essential to avoid these pitfalls and maintain control over shipping costs.
The Importance Of Real-Time Visibility
Another major challenge is the lack of real-time visibility into shipping costs. Without this, tracking actual spending versus budgeted spending becomes nearly impossible. Disparate systems only add to the confusion, leading to inaccurate financial data and hindering informed decision-making.
This lack of clarity can result in financial inaccuracies that affect a company's strategic planning and resource allocation. Access to real-time data allows for better monitoring and control of logistics expenses, helping businesses stay on budget and improve their financial health.
The Need for a Reliable System of Record
Finance executives in freight shipping desperately seek confidence in the accuracy of their financial records. They need assurance that the systems they've invested in are efficient and cost-effective. More than anything, they want to avoid burnout from constant data inconsistencies and manual processes that drain time and resources.
A reliable system of record provides a single source of truth, ensuring all financial data is consistent, simple to access, and easy to share with stakeholders. This empowers finance professionals to make informed decisions swiftly, enhancing overall business performance and boosting job satisfaction.
Enter the Solution: A Powerful TMS With Freight Audit Capabilities
Stress, manual tasks, and leaks in freight spend can be eliminated by using a powerful TMS like MyCarrier. With its built-in freight audit tool, MyInvoiceHub, it connects all the pieces of the logistics puzzle, offering a streamlined solution for freight accounting pain points.
A TMS provides a centralized platform where all shipping data is stored and processed, reducing the reliance on manual input. This results in fewer errors, faster processing times, and improved data accuracy. By automating routine tasks, a TMS frees up time for freight accountants to focus on strategic activities that drive business growth.
MyInvoiceHub for Financial Accuracy
MyCarrier's MyInvoiceHub offers comprehensive visibility into your shipping process, from quote to invoice, ensuring accuracy, ease, and a healthier bottom line. By providing a single source of financial truth, it helps control costs and increase margins significantly.
With MyInvoiceHub, freight accountants can instantly spot overpayments that damage the bottom line and underpayments that lead to unexpected costs later. This tool empowers businesses to gain a better understanding of their shipping expenses, ultimately leading to greater cost savings.
Resolve Invoice Variances with Ease
Resolving invoice variances no longer needs to be a hassle. With MyInvoiceHub, you can eliminate the tedious back-and-forth between you and your carriers. Submitting detailed disputes within the platform is quick and easy, giving your carriers exactly what they need without the need to dig for information.
This efficient approach to handling discrepancies fosters better relationships with carriers, ensuring smoother operations and improved collaboration. By resolving issues promptly, businesses can maintain strong partnerships and ensure timely deliveries.
Harness the Power of Data Analytics
Unlocking the power of your data is crucial for making informed decisions. MyInvoiceHub empowers you to dig deeper with analytics that provide a holistic view of invoice and audit activity. By analyzing trends over time with easy-to-use filters and pre-built dashboards, businesses can mitigate risks and identify opportunities for cost-savings.
These insights allow companies to optimize their logistics operations, resulting in more efficient processes and improved financial performance. By leveraging data analytics, businesses can make strategic decisions that align with their long-term goals.
Automate to Save Time and Resources
Automation is a game-changer in freight accounting. Instead of dealing with spreadsheets and manually comparing freight bills with BOLs, MyInvoiceHub lets automation do the work—fast. This not only saves time but also reduces the risk of human error, leading to more accurate results.
By automating routine tasks, freight accountants can focus on higher-level activities such as analyzing financial data and developing strategies to improve profitability. This shift in focus can lead to better business outcomes and increased employee satisfaction.
Streamlined Processes for Logistics Managers AND Finance Professionals
MyCarrier streamlines the entire shipping process. Shippers can quote all their carriers in one view, dispatch with the click of a button, track their shipments in real-time, and access valuable data and reporting. But MyInvoiceHub is the icing on the cake, unifying the entire process. This powerful tool enables you to view freight bills in one place, easily access invoice history, and instantly identify discrepancies—all within your workflow. The consolidated approach ensures efficient handling of shipping data, reducing the chances of errors and miscommunication.
With a streamlined process, both logistics managers and freight accountants can manage their workload more effectively, leading to increased productivity and job satisfaction. This also translates into better service for carriers and customers, enhancing the overall shipping experience.
Boost Job Satisfaction and Security
Investing in a TMS like MyCarrier with a specialized tool like MyInvoiceHub not only improves operational efficiency but also enhances job satisfaction and security. Knowing that the systems in place are efficient and cost-effective gives finance executives and freight accountants peace of mind.
With streamlined processes and accurate financial data, employees can focus on activities that drive business growth, leading to greater job fulfillment. This positive work environment contributes to employee retention and attracts top talent to the organization.
Conclusion
Freight accounting teams face numerous challenges in their day-to-day operations. From managing manual processes to dealing with hidden costs and data discrepancies, the obstacles can seem insurmountable. However, with the right tools and technologies, these challenges can be overcome.
By adopting a TMS like MyCarrier with its MyInvoiceHub tool, businesses can streamline their freight auditing processes, enhance data accuracy, and improve operational efficiency. This not only leads to cost savings but also boosts job satisfaction and security.
Investing in a reliable system of record ensures confidence in financial data and empowers finance professionals to make informed decisions. With automation and data analytics, organizations can unlock new opportunities for growth and success.
See MyCarrier's MyInvoiceHub in Action
Ready to transform your freight accounting processes? Schedule a demo today to see MyInvoiceHub in action. Discover how this powerful TMS and built-in freight audit tool can streamline your shipping operations, reduce costs, and boost your bottom line.
