Errors and inaccuracies on shipment invoices and payments result in increasing logistical expenses. The most common mistakes are wrong PO (Probationary Officer) numbers, incorrect carrier VAT (value-added tax) numbers, wrong billing addresses, and inaccurate VAT or total.
Moreover, duplication of shipments on the same invoice, erroneous exchange rates, inaccurate calculation of weights, and the number of parcels can hurt the shipment cost. Also, the fuel surcharge must be calculated carefully to avoid unwanted expenditures.
However, a company needs to audit its shipping invoice regularly as financial errors can hurt its bottom line. Also, auditing the invoices will save the company’s resources which can be further utilized in achieving the company’s goals. In the contrasting scenario, the employees’ focus couldn’t be retained as they’d be stuck in justifying the billing inaccuracies.
Eventually, it will result in an overall financial loss. Additionally, there isn’t any good in considering the high freight cost as the cost of doing business. So, the errors stated above must be prevented. In addition, even the employees working in the company won’t be able to carry out the freight audit process as efficiently as needed. As a solution to this, the company must hire shipping invoice audit companies for accurate calculations of its expenditures and ROI predictions.
But before that, here are seven things that you must remember and consider when hiring a freight audit company.
Time in the Industry:
The freight audit company must have enough prior experience in your area of need. Its expertise in the industry is crucial because it will allow it to assess the errors even before they occur. Hence, it will handle and manage the overall freight shipment process effectively while preventing any mistakes.
Moreover, suppose the respective company had already worked with businesses similar to yours. In that case, it will easily overcome the day-to-day challenges you’re facing and find unique solutions to overcome them. You can look for its previous records to track its efficiency.
The more experienced a company, the better results it will offer to your business.
Area of Specialization:
Unsurprisingly, the expertise of the freight audit company matters to a great extent. As one always considers specialists instead of general physicians; similarly, a company specializing in your area of interest must be regarded as the best. Remember, you are hiring a freight audit company to tackle the billing conflicts before they turn into serious issues. Here, having experts is the main reason behind the hiring process.
Don’t forget that your goal is to free up your employees’ time so that they can spend it on profit-generating activities.
In the modern era of technology, high-tech freight audit companies are considered highly reliable to work with. As the manual auditing process is tiring and prone to errors, utilizing the technology has proven to provide the required results.
From the point of origin to the destination, it’s the technology that helps improve the efficiency of a shipping process. Hence, freight audit and satellite tracking software can facilitate tracking the shipment while assuring its quality and safety.
As a result, only high-tech freight audit companies can provide you the complete shipment schedule and detailed information at your fingertips. Moreover, ensure that the respective company is willing to upscale according to the evolution in technology. Hence, it must be capable of using the latest technology for your freight audit needs.
The Process of Auditing:
Auditing comprises five main phases, namely selection, planning, execution, reporting, and follow-up. However, different freight audit companies follow different ways to perform the tasks and go through the phases that have been mentioned above.
So, ask the respective company about its working criteria and match the outcome with your freight audit needs. Remember, if its audit process isn’t compelling enough, then there is no use in hiring it as it will create even more disturbance in the freight shipment process.
This will eventually result in high freight costs, less attentive employees, poor management, and slow or no business progress.
Data management is a crucial factor in every business. It plays an essential role in the overall management and progress of a business. However, there are several ways to manage data either on the web or on cloud services.
So, you must learn about the respective freight audit company’s data management system. It will uncover all the processes, from recording the data to storing it safely. Also, you should be clear about the necessary steps to access data whenever needed.
The Potential to Grow:
After you’ve hired a freight audit company, you’ll free up more time and resources, which will aid in the overall progress of your business. You’ll be able to manufacture more products or offer efficient services. In short, your business will grow. In that case, you need to determine the growth potential of the respective audit company before hiring it, as it must also grow with your business.
If the freight audit company can’t grow more, it won’t benefit your business for a longer time. Undoubtedly, your business is dependent on it for timely and cost-effective product deliveries. Moreover, as your business will expand, you’ll reach new markets.
Eventually, the respective company must be capable of extending its services to those markets as well. Hence, growth potential is an essential aspect of a company that you must consider.
Hiring a freight audit company means assigning your freight shipment and payment responsibilities to it. Now onwards, the respective audit company will take care of the shipping process. It will manage the invoices and payments, including the taxes. Moreover, it will be responsible for the freight, weight, quantity, quality, and delivery.
However, the freight audit company will manage all the shipping tasks, resolve the conflicts, and even fight on your behalf for claiming the refunds when needed. Therefore, you must not let the financial history of the respective company go unnoticed. Review it. Also, verify it, and then you can hire it to work alongside you.
It is crucial to hire a freight audit company in today’s world as it comes with many benefits for your business. However, there a few things that you must remember and consider carefully before finalizing the hiring process.
Yes, you need to learn about the respective company’s experience, expertise, technological knowledge, growth potential, and financial history. You are required to do so because you’ll be assigning it a big responsibility in the future.