Having a trucking company is a great career path. Not only does it allow you to travel if you drive, but you can also support your drivers and communities with the equipment and supplies you transport around the country.
There are many moving parts that come with running a trucking company. One of the most important ones is invoicing. If you run a trucking company or are working in finance, here are five invoicing practices that trucking companies must know.
1. Try a Template
Creating your own invoices can take up a lot of time that you could be using for other things. There are plenty of invoice templates out there that you can use to save you that time.
You can also try using project management systems specifically for trucking to further automate the process. This way you will always have a system tracking your invoices and getting them paid in a timely manner. These systems can be expensive though, so in the meantime, using a template and adjusting it to your needs is a great way to create your invoices.
2. Double Check the Details
There are a lot of details that go on invoices when it comes to the trucking industry. So it’s crucial that you double-check all of your details before sending your invoices out to your clients.
Some common errors that occur are sending invoices to the wrong addresses. Many shipping and trucking companies may have multiple addresses, so it’s important that you check that info before sending your invoices out.
You can also write out all of the expenses a customer owes on your invoice. This can make it easy for a customer to see exactly what they are paying and prevent questions that may pop up when they receive their invoice.
If a customer receives an invoice with incorrect information or missing information they may send it back. This will delay the process and result in you getting paid late.
3. Stick to a Timeline
When you’re invoicing clients you want to make sure that you do it in a timely manner.You’re going to have a lot of shipments coming in and out with your trucking company.
It can be easy to fall behind on invoices with so much going on. So create a timeline that can help you track when you need to send out invoices to clients, and when you need responses. Having a timeline system in place can help you keep track of when you need to send out these invoices and when to follow up with clients if they haven’t paid.
4. Try Factoring
A great method to try in the trucking industry for invoices is spot factoring. Spot factoring allows you to collect payment even if the client hasn’t paid yet. Many invoices have a period of 30-90 days that they can be paid by. But when this happens you still need money to run your business and pay your drivers.
Using spot factoring allows you to keep cash flowing through your business and still obtain the money owed from an invoice without having to wait for it to hit the accounts receivable.
5. Manage Cash Flow
Although you can do this with tools like spot factoring, it’s very important to manage cash flow in a trucking business. You can do this by doing business with clients that are reliable and paying their invoices on time.
You can also make sure that you always follow up with clients to make their payments clear and easy to pay on time. Building relationships with clients that will provide you with steady work will also help you manage your cash flow.
Running a trucking company can be difficult, especially when clients don’t pay their invoices on time. Luckily these five tips can help you perfect the art of invoicing and prevent late payments from clients. The easier you make it for your clients to pay you, the more likely they are to do so and on time. Feel free to use these best practices and happy trucking.