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  • Reducing Your Transportation Costs | Complete Controller

    Reducing Your Transportation Costs

    Transportation Costs - Complete Controller

    Any increase in transportation costs can significantly degrade a company’s budget in a major way. The negative impact generated by this added expense can be felt immediately. Do you know where your transportation costs go?

    Just for perspective, transportation costs can composite anywhere between 4% and 10% of a corporation’s overall expenditures. That can consume a large amount of your captial.

    If you are looking to cut down your business costs, consider beginning with your transportation practices.

    Check out these five tips that will help reduce your business’ transportation costs: ADP. Payroll – HR – Benefits

    1. Reevaluate your delivery procedures

    The standard rate of satisfaction for trucks on U.S. roads is 67%. The pressure put on trucking companies to improve their transportation and satisfaction rates is forcing corporations to move towards more aggressive methods of cost-cutting. Sometimes to cut back on expenses, you need to get creative with your cost-cutting techniques. Consolidating vehicles is an example of one of the many solutions available to trucking companies that effectively cut costs while improving their ratings.

    With the current financial state of the COVID-era, companies have had to become creative to meet the demands of their clients. While the number of orders may be less, many businesses still find the regularity to be the same. 

    Here are a few steps that can help reduce transportation expenses:

    • Wisely manage the fluctuating rate of delivery transports.
    • Minimize travel costs by seeking better and shorter routes.
    • Ship in smaller amounts at low prices.
    • Pay close attention to the peaks and hollows of activity, and plan accordingly.

    These steps will allow companies to execute better management over their transportation, increase their inventory of new and seasonal products, and boost their promotions. LastPass – Family or Org Password Vault

    Many transportation companies are integrating their systems to save money. If your transportation company is not participating in this practice, the recommendation is to switch to one that offers this solution. This procedure often saves businesses a lot of time and money. All it requires is their willingness to work with their competitors.

    1. Optimization of transportation equipment

    When it comes to buying a vehicle, self-financing is one of the worst options available to you. According to experts, it is better to take out a loan, as the cost of financing proves to be the cheapest option in the long term. Long-term leasing allows you to have better tax-related benefits

    Another advantage to leasing is that after you decide to lease the vehicle, property, equipment, etc., you can either repay the loan, expand the lease, or obtain the property (depending on the buying rates defined in the lease agreement).

    Regarding the lasting lease method, this does not always mean you can end up owning the property or asset at the end of the lease. Some leases require that the asset be returned or that you renew the lease. This type of lease is a good option when you only need something for a period of time. Exit Advisor

    For insurance: It is important to note that everything is negotiable. Often, insurance companies have wiggle room ranging from 10 to 20%. 

    If transportation costs are an issue for your business, it may be best that employees use their own vehicles while getting paid moderately for their miles. This will also save on insurance and maintenance costs and the tax on company vehicles. 

    1. Inflate tires and shut off the air conditioning

    While traveling at an average rate of 65 mph, air conditioning can shave off 3 miles per gallon of fuel. Recklessly blasting the A.C. could cost your company a small fortune in fuel over-consumption.

    Overall, you can see there are many ways you can save your business on transportation costs. It all comes down to what works for you and your business’ specific needs. 

    CorpNet. Start A New Business Now About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Complete Controller. America’s Bookkeeping Experts