The fleet is the heart of a transportation company and its biggest expense. Leasing, financing, purchases, repairs, tires, insurance, and taxes are spread across many vehicles. We post expenses to cost centers on a per-vehicle basis, if you wish, so that the report shows what each vehicle costs and earns.
Fuel card companies and toll providers issue combined invoices, often covering multiple countries and including foreign VAT. We break down these combined invoices and allocate them to the vehicles. Your tax advisor determines whether foreign VAT is refundable; we compile the invoices for that purpose.
Many transportation companies work with subcontractors and settle accounts using credit memos issued by the customer. Credit memos must contain all the details required on an invoice. If any mandatory detail is missing, the input VAT deduction may be at risk; we therefore check credit memos when posting and let you know if anything needs to be added. There are also freight statements, demurrage charges, and damage claims with insurers.
Special rules apply to drivers: additional meal expenses, overnight stays in the vehicle, international trips, and driving and rest periods. Wages depend on the trip data. If you drive across borders, you also face VAT questions on transportation services, which the tax advisor assesses.
Payment terms in the transportation industry are often long, but diesel and tolls are due immediately. Many companies therefore use factoring and sell their receivables. Payments then go through the factor, with fees, withholdings, and statements that must align with the company’s own invoices. We reconcile the factor’s statements with the open items so it’s clear which invoices are paid, assigned, or still outstanding.
