Small sized logistics companies

Accounting services outsourcing for small logistics companies in South China and HK

Fee is negotiable but you may assume it is much lower that your existing cost. Moreover, our company can generate much useful information for running the business

We can share below knowledge and experience to small sized logistics companies

  • Customer Relationship management
  • Revenue management
  • Cost reduction and alert system
  • Fraud prevention
  • International tax planning
  • Internal control & Risk management
  • Contract management
  • Business analysis
  • billing, credit control and collection
  • Treasury, funding and cashflow management
  • Procurement
  • Payment
  • Carrier/Agent/Partner management
  • Regional office control and Compliance
  • KPI measurement, workflow and work study
  • Accounting Policy, Process and documents

The benefits of accounting Service outsourcing to small sized logistics companies are

  • Sharing Knowledge can increase sales, improve service quality and customer satisfaction, save processing time, avoid risk and save operating costs of your company
  • It can be flexible in the form of training and part time financial controller working for company under hourly rate for contracted period
  • It is affordable by small to medium logistics company instead of paying an experienced financial controller or senior manager
  • The benefits greatly exceed the costs
  • The benefit is long term and sustainable

The characteristics of Accounts Receivable of international freight forwarding industry

  • Multi-currency, changing exchange rate and payers in different countries under different jurisdiction
  • Seasonal price & CAF, Bunker results in frequent change in quotes, late billing, frequent amendment on invoices, issue of debit note and credit note, supplementary invoice
  • Voluminous transactions
  • Integrated logistics service and charges
  • Incoterms is necessary to identify billing party
  • COD term for new customers
  • Payment and collection on behalf of others
  • Set off against AR and AP
  • Intercompany and Agent reconciliation
  • Summary invoice and Interfacing transactions among customers and vendors
  • Frequent review on credit limit especially overseas agent
  • Multi billing and payment location
  • Tax invoices in China
  • Revenue recognition is difficult due to different incoterm, import & export, integrated services

The characteristics of Accounts Payable of international freight forwarding industry

  • Audit on payment is difficult due to voluminous transaction, integrated services and seasonal price and different Incoterms
  • On time payment is necessary to ensure the reliability supply of cargo space
  • Late billing or debit note or credit note by agent is common
  • TT payment to agent in overseas
  • Dispute and transactions need clarification is common
  • Payment should be checked against billing to avoid omission of billing
  • Payment should be processed after netting of Accounts Receivable
  • Tax invoices is necessary before payment in China

The characteristics of taxation for international freight forwarding industry

  • Profit tax is one of the lowest in HK
  • No GST/VAT in HK
  • Offshore income is free of tax in HK
  • Subject to different taxation in different countries
  • Transfer pricing applies to each transaction

The characteristics of critical costs for freight forwarding industry

  • Sharing costs
  • Unnecessary costs, KPI and Improvement in efficiency
  • Cost reducing snowball cycle
  • Open sourcing
  • Unabsorbed cost
  • Idle cost
  • Taxation cot
  • Consolidation and equalization
  • Contingent cost, mishandling, claim and compensation, over-specification

The characteristics of pricing for freight forwarding industry

  • Seasonal pricing
  • Penetrating price for developing of new business operating unit
  • Peak seasonal price
  • Breakeven pricing for idle
  • Discount price for trial run
  • Premium service for the best services

The characteristics of IFRS for freight forwarding industry

  • Lessor accounting
  • Revenue Recognition
  • Accrual
  • Contingent cost

The characteristics of month end closing for freight forwarding industry

  • Early cut off not possible due to SOA issues
  • Revenue and Cost Accrual
  • Interface from operating to accounting
  • Intercompany reconciliation and agent reconciliation