How Can Accounting Help the Logistics & Cargo Service Business in the UAE?
22

Nov 2019

This shrinking world owes a lot to the logistics and cargo service business. The free and quick transfer of goods assists the companies to have a global presence all around the world. This has been possible due to the various breakthrough innovations in the last few years. These innovations have not only helped create a faster and better network for the transfer of goods but have also allowed for economical and easy ways of taking products from one place to another.

It will be safe to say that having a logistics and cargo service business can be fruitful for an entrepreneur. With the increasing globalization and the middle east having some of the most widely used trade routes, UAE is considered as one of the best centres for setting up a business for logistics and cargo service.

However, with the rise in the cost of fuels and the increasing competition among the logistics companies, the companies need to focus on ways to reduce their total costs. One foolproof method of reducing the costs of your business is to avail the services of an accountant.

An accountant will perform an array of functions which will allow the accountant to have a complete understanding of all the processes and procedures of the company and how he can reduce any wastage of resources. He will also provide a monthly report and handle all the financial analysis of the company to guide the company towards a better future.

Given below are six reasons through which accounting can help the Cargo and logistic business in the UAE.

How Can Accounting Help Logistic Business in UAE?

Having a deep understanding of how a logistics business works are one of the most requirements of an accountant. The various ways in which the accountant can help the business are as follows:

1.Help in Better Management of the Assets

An accountant will keep the count of all the various assets of the company and will ensure that they are being used correctly and for the right purpose. The accountant will maintain a balance between the assets and the liabilities of the business and will ensure that the company grows to its full potential.

The accountant will maintain a categorical account of all the assets and liabilities of the company and also prepare all the various financial statements.

2.Reduce Wastage of Resource

Since the accountant will be privy to all the information of the company, the accountant will keep a record of all the resources used in the company. He will also ensure that all the resources be it funds, raw materials or human resources, are used properly and are not wasted. The reduction of wastage of the resources will help reduce the costs incurred by the logistic company. 

3.Help Reduce the Time taken for Transportation

The accountant will streamline the various process that is being conducted by the company. This will help reduce the time taken for the Transportation of goods and will ensure better customer services.

4.Monitor the Third Party Logistics (3PL)

In certain cases, a company may hire a third party, which will take care of all the logistics. In such a case, the accountant will take care of monitoring the third party so that the company can avail all the proper services. 

5.Keep the Business on Track

The accountant has to analyse all the facts and figure so that the company can avail the full benefits of the logistic service. This move will also allow the accountant to understand the working of the company and can then devise a strategy for the future.

6.Quantify Risks and Find Alternatives

The business environment is full of various business opportunities, but to avail said opportunities, one needs to take risks. The accountant will quantify the dangers which would allow the management to choose an available course of action, and it would also enable the administration to find alternatives to the present problem.

7.Better Tax Planning

Tax planning can be defined as the analysis of the finances from a tax perspective. The accountant will see to it that the company will benefit from proper tax planning.

Apart from the reasons given above, there are many other reasons due to which a logistic company should avail the service of a business accounting services.

If you are looking to hire the services of an accountant for your logistic business, you must consider “JAXA Chartered Accountants”. JAXA also provides various other services such as Auditing, tax calculation, payroll and many others. For more details on the services offered by JAXA, do contact us we’d be happy to help you.