It sneaks up on an owner operator with no warning. Business is good. And then the truck owner realizes that there isn’t any money to pay for fuel. What happened? Everything looked good – on paper. But past-due invoices haven’t been paid, and the bank accounts are low. When unpaid freight invoice tracking is ignored, cash flow suffers.
Unpaid Freight Invoice Tracking
Our in-house trucker, Allen Campbell, has a story about his trucking company. Regular lanes from a local business to another state open up opportunities to bring home some freight instead of deadheading. His business was doing well, hauling freight around the eastern half of the US. The regular lanes produced steady income. So why wasn’t there money to pay for fuel?
The problem was simple, once he took a look at his spreadsheets. He wasn’t being paid for those other trips that sometimes took the drivers far from his home base. Why not? Why weren’t the invoices being paid?
And better – why didn’t he notice that he wasn’t being paid?
Factoring
The cash flow problems led Allen to freight factoring — the practice of selling invoices to a finance company for a portion of the invoice’s value. The cash he got from selling the invoices covered the cost of the fuel. But he wasn’t making as much profit on the loads. This became a pattern that Allen wanted to stop.
The key wasn’t factoring. The key was tracking those past-due invoices. In the early 2000s, Allen ran his trucking business on multiple spreadsheets. Invoice tracking isn’t very spreadsheet-friendly, and often delays were due to a lack of necessary documentation. By the time his bookkeeper noticed the late invoice, the records may have been shoved into a box in a closet a month ago.
TruckingOffice Trucking Management Software
With the development of TruckingOffice, a cutting-edge trucking company software package, tracking invoices became far easier. By emailing the invoices and sending images of BOLs, payments sped up. Problems were identified faster and solved quickly. Unpaid freight invoice tracking became a simple daily task instead of a weekly slog through the back of the closet. As the entire transportation industry – and the rest of the world – moved to using electronic systems, freight invoice tracking reduced the need for factoring.
Or did it?
TMS – trucking software – has taken over the industry. Creating an invoice has been simplified to the push of a few buttons. So why are so many independent truckers struggling with cash flow?
Cash Flow
In 2021 and 2022, the trucking industry saw record pay-per-mile rates. Between the supply chain breakdowns from the pandemic and international freight delays, rates skyrocketed. Some owner operator truckers wouldn’t move out of their recliners for less than $3.00 per mile.
Those high-paying loads also saw record prices for diesel fuel. The inflation rates of the early 2020s ate up those “big profits.” Truckers were facing a net loss in their businesses. Thousands of trucking companies – not just the independent small fleets, but big ones like Yellow Freight – closed.
Truckers who depend on spreadsheets or accounting software that isn’t trucking-specific may have trouble getting paid. Brokers and shippers may cut costs on truckers’ backs and delay their payments for 60 to 90 days. The result? Cash flow is stalled.
TruckingOffice PRO solves many of the problems that independent truckers, owner operators, and small fleet managers face with its complete invoice management process.
TruckingOffice PRO
Getting those unpaid invoices with TruckingOffice PRO starts with the invoices tab on the menu. Under that tab, you’ll find a number of reports that focus on unpaid invoices. At 30 days, another invoice can be sent – or it can be a reminder to contact the shipper about the invoice. Are they missing critical documents? Why is the payment being delayed?
Complete billable accessory charges are added to the invoice easily to reduce the “we don’t have the BOL” complaints that some shippers might use. With TruckingOffice PRO, BOLs and other documents can be stored and sent with the invoices.
Because TruckingOffice PRO is accessible wherever a trucker has an internet connection, invoices can be sent while the truck driver is still in the yard. It isn’t a matter of waiting until the driver gets home with all the documents. Uploaded images, immediate access to extra charges, and a signed BOL can be sent to the broker or shipper within minutes of the delivery. No more waiting to send the invoice speeds up the payments.
Pay attention to past-due invoices. Even when business looks good, unpaid invoices hurt good trucking businesses. Keep your business on the road and profitable by checking invoices regularly and contacting the shipper or broker when they’re late.
Professional Requests vs. Demands: What Works for You?
Is resending the invoice an effective way to get unpaid freight invoices paid? Do you prefer calling instead of email? Do you keep track of companies that haven’t paid in a reasonable amount of time – and avoid them in the future? Do you think that brokers help you – or stall you – to get that cash into your pocket?
Let us know what works for you!
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