Updated: Dec 27, 2022
If you like your customers to pay on time, your billing process must be free of any inefficiencies. 61% of late invoice payments occur because of incorrect invoices, according to reports.
Logistics is an industry that frequently sees late payments. To add to the complexity, logistics involves multiple many touchpoints. Your billing department coordinates with the sales, operations, and, at times, with customers. A simple yet effective billing system can ease the pressure on your logistics operations and finances.
Being a critical function, your billing team requires the appropriate logistics billing software and streamlined processes to keep pace with the growing business. Unorganized billing affects more than just your revenue. Understand the effects that billing errors can cause and take the right approach for stress-free billing.
What happens when you don't handle billing mistakes
Sending bills and invoices late means the late arrival of your revenue. Frequent delays in the money coming into your company could create an undesirable financial situation.
Periodic mistakes in your invoices can make your customers doubt you. A shaken customer trust can be difficult to restore.
Inaccurate picture of finances
If you don't bill all charges accurately, you may not exactly know your revenues and income. This could pose a problem in taxation and other regulatory compliance.
Here are some common logistics billing mistakes and how to avoid them
Mistake: Late or missed sending of invoices
Scenario: Your cargo is ready to pick up from the factory but since the bill isn't ready, you must bear the transporter's extended waiting cost.
Solution: Design your process to generate the bill for the transport as soon as you confirm the pick-up order.
Problem: Missed charges
Scenario: Your warehouse provides an additional service like custom packaging and informs the billing team via email. The customer's bill doesn't show the charge. But the monthly audit highlights the miss but it is too late for recovery.
Solution: Intelligent logistics ERP like Logi-Sys uses master data to initialize all charges applicable to a job. So once the operations add the charge, it is auto-included in the bill generation.
Problem: Wrong terms billed to the customer
Scenario: Billing a regular customer cargo for volume rather than on weight
Solution: Each logistics business runs differently. In Logi-Sys, you can define charges that are specific to each customer. Once set, initial charges appear in the job per the customer's line of business i.e. air, sea, and land.
Problem: Over or under-billing your customers
Scenario: You overcharged or undercharged a customer
Solution: Reliable software allow you set lower and upper limits on the charges. This prevents you from accidentally setting the wrong extreme rates and avoids embarrassment.
Problem: Mismatch of invoices on the system and one sent to the customer
Scenario: Additional charges introduced in invoice post sharing with customer
Solution: Logi-Sys provides operational and financial locks. It helps prevent changes once the job is complete. In financial locking, you can lock the job for changes after a pre-set number of days have passed.
Make your logistics billing process efficient
An invoice in a logistics company goes through several departments for data collection. Lesser the manual entries, the smoother and more accurate the billing process is. With Logi-Sys logistics management software, bring automation to your billing process and enjoy worry-free revenue collection, even under heavy volumes.