Many owners of trucking companies either handle accounting themselves, work with a CPA, or use cloud-based accounting services. While accounting can sometimes cause major headaches, there is a way to make things easier for your trucking company and ensure you are always operating in the positive.
Pain Points in Accounting
Most accounting issues can be traced to a single source. For a trucking company, the source is usually unpaid receivables. If sales are great but expenses are outweighing the amount of revenue coming in, the most likely source of the problem is the lag between services rendered and client payments. Since the average trucking company issues freight bills with payment schedules of 30, 60, or 90 days, revenue is staggered. At the same time, regular expenses, maintenance, fuel, and payroll must be met. This can result in frequent periods when expenditures are higher than revenue. At the same time, some brokers and direct clients may let freight bills age out completely, forcing a trucking company to perform collections. This can place a further strain on cash flow, as a simple collection can add an additional month or so to the time before payment is received.
Boosting Cash Flow for Your Trucking Company
To boost cash flow and reduce your accounting headaches, trucking companies use freight bill factoring. Freight bill factoring converts unpaid receivables to cash. This boosts cash flow for your trucking company and makes accounting easier. When shipments are completed, you can submit receivables for factoring via smartphone, computer, or fax. Then those freight bills are factored and funds are made available within 24 hours. Freight bill factoring removes the need to send out reminders to clients for payments. Additionally, factoring boosts cash flow so payroll, fuel, and other expenses are covered. Because of the fast turnaround, receivables never get a chance to “age out,” so there is no need to perform collections. Best of all, freight bill factoring works for trucking companies of all sizes.
Express Freight Finance offers the most comprehensive freight bill factoring in the United States. In addition to fast turnaround on receivables, we provide personal account management and tools to check on the creditworthiness of your clients and brokers. Rightsize your cash flow and contact Express Freight Finance today.