How to Perfect Your Freight Invoices
In this industry, invoicing results in lots of paperwork, and good paperwork is king. It will keep you better organized, help you project a more professional appearance to clients, and believe it or not, can even help get you paid faster. In this article, we will be looking at just how to perfect your pricing invoices.
What is a Freight Invoice?
Carriers provide a freight invoice, which you may also hear called a freight bill, to summarize the details of the transaction. Many of these invoices follow a standard-style freight invoice template. Some of the line items detail a description of the freight, the shipper’s contact information, point of origin, and any other freight costs. It is important however to note that there are commonly several different forms that a debtor will require before they will pay out on the invoice such as a bill of lading (BOL). These requirements can often vary a little from debtor to debtor so you will want to make sure that you know what is needed for the companies that you are working with so that your invoices go through smoothly.
What Should Be Included in a Freight Invoice?
- What Should Be Included in a Freight Invoice?
Company name - Names of consignor and consignee (sender and receiver)
- Date of the shipment
- Origin and destination points
- The number of packages
- Description of freight
- Weight, volume, or measurement of freight
- Exact rate(s) assessed
- Total charges due, including any charges for special services and where they took place.
- Route of movement and name of each carrier participating in the transportation
- Any transfer point(s) through which shipment passed
- Address where payment must be made or address of bill issuer’s principal place of business
What is a Freight Invoice Audit?
The freight audit is a standard auditing practice completed by the shipper to make sure that the carrier invoices, bill of lading (BOL), and all other paperwork match and is correct for the loads run. While some of this process is run through automation systems, other parts are still handled manually. This is an opportunity for the shipper to go through the contract information and verify trends in pricing and current freight rates seeking opportunities for cost savings. The goal is to make sure that the prices they are paying in freight charges is within the industry standard over time and that they are not essentially losing money by overpaying for services. Your bottom line freight spend is always a factor that you want to be properly monitored in your logistics company.
Freight Payment Services
Freight payment services, also known as factoring, is a solution in which a trucking business sells its accounts receivables or invoices for all of their loads to a factoring company to get paid for that load now instead of waiting the length of their payment terms to get paid on them. Freight invoice processing allows trucking companies of all sizes to have the working capital needed on hand to cover fuel prices, payroll, tariffs, etc. to keep their business in motion and on the road making money.
Understanding freight invoices is a crucial part of the trucking industry. For more information and industry knowledge, talk to one of our trucking industry experts today! 913-393-6110