Invoice reconciliation

  • When shipping is an integral part of your organisation, managing and processing invoices and making timely payments becomes a critical task.  It is crucial that you have a system in place that ensures visibility over freight invoice processing and payments. When done right, it will become an opportunity to save costs and ensure process efficiencies.  Unfortunately, financial clarity into the supply chain has long been a challenge that professionals have failed to overcome. Manual, paper-based freight audits and payments are bound to get tedious, costly and time-consuming. However, no more.  But the emergence of freight bill audit software has made seamless, accurate and efficient audits possible.  Why is Freight Bill Audit and Pay (FBAP) important?  Freight Bill Audit and Pay is an essential component of any export-import oriented business. However, despite several advancements in this space, companies are reluctant to leverage technology to match invoices and process payments, resulting in a lost opportunity to save costs. The old way of manually processing freight invoices and assuming that not much can go wrong can cost businesses big money.  Industry studies reveal that freight invoice processing costs around $5 to $12 per invoice. Worst yet, the process is mundane, time-consuming and prone to errors. Add this to the sheer volume of invoices, and it’s clear how costly the process can get.  Primarily if your organisation deals with hundreds of invoices every month, effectively managing paperwork can be exhausting, and errors can be inevitable in several cases.  Besides, many companies do not have sufficient resources to audit every bill, and random checks can often be misleading. In such cases, problems such as overpayments, hidden fees,  duplicate payments or redundant costs due to delayed payments are bound to happen. Key Features of a Freight Audit and Pay Software Implementing a system that automates your...
  • Freight audit and payments may not be the first thing that comes to your mind when you think of ways to reduce freight costs. The cost of manually reconciling freight invoices is one expense that remains hidden and silently affects your bottom line.  Industry studies estimate that manual invoice processing costs around $5 to $12 per invoice. Moreover, the process is time-consuming, prone to error, and stifles the productivity of your team.  This article explores various factors associated with freight invoicing and how automation technology is transforming invoice reconciliation.  What is a freight invoice? Freight invoice is a document issued by the carrier. It has information such as the description of the freight, point of origin, name of the shipper, the shipment’s weight, charges applied and more.  Typically, logistics managers and the accounts team deal with invoice processing regularly. With invoice reconciliation, on some days everything works out well while on most days invoices don’t match the original quotation and lead to laborious person follow-ups for rectified invoices.  However, today there’s a way to ensure accurate invoice matching and save your team from accounting nightmares.  Here are some freight invoice facts that you should know if you still rely on manual freight invoice processing:  Industry studies show that approximately 75% of logistics leaders believe that there are negligible discrepancies between the final quotation they get and the freight invoice. By merely considering the sheer volume of freight invoices that your logistics teams receive, you can gauge how costly mistakes can, and do, happen. From our data and experience working with leading organisations, we have discovered that up to 60% of freight invoices do not match the final quotation. Besides, in about 20% of the cases, these discrepancies go unchecked and lead to mistakes such as:  Duplicate payments: There are times...
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