Inflation is truly more contagious than we thought – impacting domestic and international transportation alike. Such growth will make accurate settlement and freight reconciliation more crucial than ever as the flow of imports evolves.
The Wall Street Journal reports, “Ocean-shipping executives say they expect the rates set in many annual contracts will double compared with agreements struck earlier [in 2021] before supply-chain bottlenecks squeezed capacity. Some trucking companies project double-digit growth in contract rates for 2022. [As of late 2021,] domestic shipping rates for moving goods by road and rail in the U.S. are up about 23% over 2020.”
General ledger reconciliation software can automate accounting and settlement tasks like freight reconciliation. In doing so, supply chain leaders can centralize accounting information to maintain constant awareness of current costs – and those that are coming down the line. They can also utilize technology tools to reduce strain on resources and improve accounting accuracy.
What Is General Ledger Accounting in Freight?
GL software expedites accounting workflow through its ability to store all related financial documents in an easily accessible form. General ledger software also brings in a new level of automation potential. However, shippers and carriers alike need to analyze the capabilities of freight accounting software before applying it during their next freight invoice audit.
What to Look for in A General Ledger Software
Due to the freight transportation services landscape, it’s important to vet potential accounting software carefully. Consider these points:
Auto Tagging Freight Invoice Data to Payments
Part of the challenge in freight reconciliation comes from the sheer size and scope of invoice and freight data. Thus, shippers are looking for software that will automatically identify and tag shipments with the correct codes and use that information to streamline the overall process of balancing the books.
Automated Freight ReconciliationReconciliation might seem simple on the surface, but applied across hundreds of thousands of shipments, it quickly becomes a nightmare. Automating the freight reconciliation process removes the bulk of this tedious task from manual labor resources for everything outside of exceptions that need correction.
Immediate Shipment Data CaptureAny plan for general ledger reconciliation must begin with instant, complete data capture. Aggregating data from all systems within a unified TMS paints a more complete picture of freight accounts.
Instant, Embedded Auditing
High-quality GL software helps shippers track their freight costs and immediately ensure all invoiced costs are accurate. This level of embedded auditing reduces back-office costs and streamlines processing when companies are ready to conduct a freight audit.
Interdepartmental Sharing and OptimizationCollaboration is the life force of a robust general ledger solution. The right software enables interdepartmental sharing of invoicing data to ensure all costs are accounted for properly. Doing so optimizes opportunities for shippers to know which carriers and service levels might yield a lower future cost.
Easy-To-Deploy, Off-The-Shelf Solutions
Off-the-shelf solutions for freight accounting mean shippers can see positive results on day one by immediately working to restore balance in their books. Also, adaptable modules within a cloud-based TMS make it easy to unify freight reconciliation and other features to make managing multiple processes easier than ever.
Proactive Customer Support and System Training
Another critical factor to consider when vetting a platform for general ledger reconciliation is training and support. For a shipper to improve customer experience, their team must first be trained by software support specialists to maximize efficiency and ROI.
Automatic Report Generation and SharingWhen considering what is general ledger accounting’s strongest point, the culmination of the auditing and reconciliation process should be a top contender. These reports are critical for actionable data for future transactions.
Streamline Freight Accounting With MercuryGate
Automating freight reconciliation and accounting requires a capable, unbiased and transparent system. To learn more about automating freight settlement within an industry-leading TMS, download our capabilities brochure.