Freight invoice processing is an essential part of managing a carrier business. Unfortunately, invoice processing can be endlessly frustrating for dispatchers and accounting.
Dispatchers lose countless hours chasing drivers for proof of delivery. The accounting department can’t issue an invoice without supporting documentation, and every loose end increases Days Sales Outstanding (DSO) time. It’s a lot of pressure for dispatchers — but there’s a better way to manage invoices and get paid faster.
In this post, we’ll explain how to fix a broken freight invoicing process, the tools you need for better invoicing, and the benefits of adopting carrier-specific technology for freight invoice management.
Common Challenges in Freight Invoicing
Here are the top issues that complicate freight invoicing and increase DSO:
Paper Records
While other industries have embraced paperless recordkeeping, the trucking sector has been slow to transition from paper to digital records. Fleets that rely on paper-based systems and manual processes are likely to have a long invoicing process that requires data entry, scanning and copying documents, and storing paper files in a central location.
If paper records are necessary for invoicing, there are only a few options for getting them:
- Wait for the driver to return to the main office with the documents
- Ask the driver to take a picture of the documentation and email it to the office, then print the images to attach to the invoice
The problem with cellphone images is that drivers may be using phones with different camera quality and image resolution. Emailed images might be massive files that take a long time to load (and clog inboxes), or images may be of such low quality that you can’t print a clear copy. And of course, managing such an important process via email isn’t ideal — it’s an easy way to lose track of critical information.
Insufficient Technology
Invoicing and accounting software that’s not specifically for the transportation industry usually requires some kind of “workaround” to make it suit your needs. For example, with accounting software like QuickBooks, you can’t create invoices with trucking-specific details like chassis, container, and rate type. The best you can do is include details in the invoice notes field — another manual process that interferes with efficiency.
No Process for Invoice Tracking and Collections
You shouldn’t have to hound customers for payment, but that’s part of the job sometimes.
Carriers that have a lot of customers but no process for tracking overdue invoices and collections efforts often rely on invoice factoring to get paid faster. The invoice factoring provider handles collections, and you get your money right away. But you also pay a fee — usually 1%-5% — for that convenience. Over time, those fees can eat into your profitability.
The flipside of this problem is that if you’re not monitoring who pays their invoices and when, you can’t identify who’s paying invoices early. Early-paying customers are the ones you can’t afford to lose. If you track payments effectively, you can identify these accounts, offer them discounts for their timeliness, and improve customer retention.
How to Get a Handle on the Freight Invoicing Process
In the transportation industry, efficiency is critical for success, whether you’re optimizing your LTL routes or creating invoices. With the right TMS, you can increase efficiency for every aspect of your business.
PCS TMS for Carriers includes all the tools you need to manage your business, including freight invoicing. Here’s how it helps you get paid faster:
Automate Invoice Creation
Easily set up your invoices, add email recipients from your customer and contacts list, and choose backup documentation requirements. Using the PCS Mobile app, drivers can capture high-quality images of bill of ladings, load receipts, and other documents that automatically sync with invoices — no more cluttered inboxes and bad photos.
The software does the auditing for you, quickly verifying invoice accuracy, sending invoices to customers, and organizing all invoices within the platform.
Maintain Audit-Ready Financial Records
PCS TMS incorporates GAAP-compliant records management and detailed reporting features that provide complete visibility into every accounting task and transaction. If a customer questions or disputes an invoice, you can easily access all associated details, share documentation, and resolve the issue quickly.
Access Invoices from Anywhere
PCS TMS for Carriers is cloud-based, so you can access invoices and other files from anywhere using your laptop or desktop.
Reduce DSO
The speed and agility of PCS TMS for Carriers compresses the timeline between delivery and payment. One PCS customer shortened its DSO by 8 to 12 days when its drivers started using the PCS Mobile app.
Reduce Reliance on Factoring
Invoice factoring can be a good way to keep cash flow consistent, but it’s not a regular need when you have an effective process for managing collections.
PCS TMS for Carriers shows you the status of all invoices at a glance. It also shows you every step in the collection process — who you contacted, when, and through what method — so you never lose track of an overdue invoice.
Experience a Better Way to Manage Freight Invoicing
The freight invoicing process doesn’t need to be complicated, frustrating, and slow. With PCS TMS for Carriers, you can get paid faster, see payment trends for customers, and customize every invoice with a lot less effort.
See how PCS TMS simplifies operations for carriers and gives them the capacity to grow. Request a demo, and we’ll walk you through the user-friendly and powerful features that’ll help you solve your invoicing problems — and more.
