Accounting in the TSL Industry: What Are the Biggest Challenges?

Accounting in companies within the TSL (Transport, Shipping, Logistics) industry presents numerous challenges. The complexity of national tax and customs regulations, the need to keep records and report driver working hours, along with issues related to debt collection and controlling, contribute to a significant increase in the volume of documents and the risk of errors.

The last year was exceptionally difficult for the TSL industry. Economic stagnation in Poland and the EU, the complicated situation at the Ukrainian border, new requirements for transport to the UK, and increasing competition from large European companies led to a decline in turnover for many businesses. Industry organizations have sounded the alarm over the bankruptcies of smaller entities. Additionally, transport and logistics companies must navigate through a maze of various national tax and customs regulations.

– A standard practice in this industry is to work with paper documents, which are often delivered with delays. This increases the risk of errors – says Joanna Porath, CEO of the customs agency AC Porath.

The EU Customs Code often refers to the national regulations of member states. The customs duty for a specific tariff code will be the same regardless of whether goods are introduced into circulation in Poland or another country within the EU customs territory. However, the level of taxes in these countries can differ.

– Depending on the client’s needs, we can offer customs solutions that will be most beneficial to their cash flow. For example, customs clearance in Germany or Belgium may be more advantageous for the recipient because of lower taxes than in some other EU countries. On the other hand, cross-border settlements generate different risks and liabilities, of which the importer must be aware – adds Joanna Porath.

For companies, effective internal handling of customs and accounting processes is much more expensive than outsourcing these tasks to external specialists. – But it’s not just about costs –  emphasizes Dariusz Brzeziński, Director of BPO Center at Meritoros. He points out that modern accounting firms have implemented automated error detection systems, ensuring a higher level of security.

– Through automation and digitalization of processes, we enhance the quality of accounting operations, improve our controlling activities, and make debt collection more efficient – highlights the Meritoros expert.

All of this contributes to better cash flow. In larger companies, this can result in savings of millions of zlotys annually and an improvement in financial flows of several million zlotys. Even smaller amounts can be crucial for industries that operate on a 2-3 percent net margin.