Billing and Invoicing Software

Billing and Invoicing Software for Trucking

Getting paid quickly and accurately is critical for cash flow in trucking. Billing and invoicing software automates the payment process, reduces errors, speeds up collections, and integrates with factoring companies and accounting systems. This guide covers the tools and best practices for efficient billing in trucking operations.

Why Billing Software Matters

Cash Flow Impact:

Manual Billing Problems:

❌ Slow invoice creation (20-30 min per load)
❌ Missing documents (lost PODs, unsigned BOLs)
❌ Errors in amounts or details
❌ Delayed submission = delayed payment
❌ No payment tracking

Automated Billing Benefits:

✅ Invoice generated automatically when load delivered
✅ Documents attached electronically
✅ Accurate data (from dispatch system)
✅ Instant submission to broker/factoring
✅ Payment tracking and follow-up

Cash Flow Improvement:

Manual: 45-60 days to payment
Automated with factoring: 1-2 days to payment
Better cash flow = Fuel trucks, pay drivers, grow business

Billing Software Options

1. Integrated TMS Billing:

Built-In Features:

Load data flows directly to invoice
Attach POD, BOL, rate confirmation automatically
Send electronically to customer
Track payment status

Major TMS with Billing:

McLeod LoadMaster: Complete billing module
Axon: Integrated invoicing
Rose Rocket: Automated billing
Tailwind: Billing and accounting

Advantages:

✅ No duplicate data entry
✅ Single system to learn
✅ Real-time invoice status
✅ Integrated with dispatch

2. Standalone Trucking Billing Software:

Dedicated Billing Tools:

TruckLogics:

Invoicing
Expense tracking
IFTA reporting
Cost: $29-$99/month

ProTransport:

Load invoicing
Factoring integration
Basic accounting
Cost: $25-$75/month

Best For:

Small carriers (1-10 trucks)
Those not needing full TMS
Budget-conscious operations

3. General Accounting Software (Adapted):

QuickBooks:

Small business accounting standard
Can be customized for trucking
Invoice creation
Expense tracking
Cost: $30-$200/month

Xero:

Cloud accounting
Good invoicing features
Multi-currency (if Canadian freight)
Cost: $15-$70/month

Limitations:

Not trucking-specific
Requires manual data entry from loads
No automatic document attachment
No factoring integration (usually)

Best For:

Very small operations
Those already using QuickBooks
Simple billing needs

Factoring Integration

What is Factoring:

Definition:

Selling invoices to factoring company for immediate cash
Receive 95-98% of invoice value within 1-2 days
Factoring company collects from broker in 30 days
Pay 2-5% fee for quick payment

Why Carriers Use It:

Cash flow: Can't wait 30 days for payment
Fuel trucks: Need cash for diesel
Pay drivers: Weekly payroll
Operating expenses: Insurance, repairs, etc.

Factoring Software Integration:

Major Factoring Companies:

OTR Capital
RTS Financial
Triumph Business Capital
eCapital
Apex Capital

How Integration Works:

Load delivered, POD obtained

TMS automatically generates invoice

Invoice + documents auto-submitted to factoring company

Factoring company verifies and funds

Money in carrier's bank account within 24-48 hours

Benefits:

✅ No manual invoice creation
✅ No emailing documents
✅ Faster funding
✅ Automatic payment tracking

Invoice Components

Required Information:

Carrier Details:

Company name and MC number
Address, phone, email
Remit-to address (factoring company if applicable)

Customer Details:

Broker/shipper name
MC or business license number
Billing address

Load Details:

Rate confirmation number
Pickup date, location, shipper
Delivery date, location, receiver
BOL number
Commodity description

Charges:

Line haul: Base freight rate
Fuel surcharge: If applicable
Detention: Waiting time charges
Lumper fees: Unloading charges (if reimbursable)
Tarp fees: Flatbed tarping (if applicable)
Total amount due

Payment Terms:

Net 30, Quick Pay, or other terms
Due date

Supporting Documents:

Signed rate confirmation
Signed BOL
Signed POD (proof of delivery)

Billing Best Practices

1. Submit Invoices Immediately:

Timing Matters:

Submit within 24 hours of delivery
Don't wait until "end of week"
Faster submission = faster payment

Why:

Broker payment clock starts when they receive invoice
Factoring companies fund faster with quick submission
Reduces "forgotten" invoices

2. Verify Documents Before Submission:

Checklist:

✅ POD has signature (not just printed name)
✅ BOL is signed by receiver
✅ Dates and times are correct
✅ Amounts match rate confirmation
✅ All pages present (no missing pages)

Rejection Reasons:

Missing signature
Illegible signature
Wrong date
Mismatch between RC and invoice
Missing documents

Each Rejection:

Delays payment by days or weeks
More back-and-forth
Dispatcher time wasted

3. Track Payment Status:

Payment Lifecycle:

Submitted: Invoice sent to broker/factoring

Received: Broker acknowledges receipt

Approved: Broker approves for payment

Scheduled: Payment scheduled for payment date

Paid: Money received in account

Follow-Up:

If no payment by due date +3 days → Call broker
If no response → Escalate (broker's management, TIA complaint)
Document all communication

Software Features:

Aging reports (show overdue invoices)
Payment status dashboard
Automated payment reminders

4. Dispute Resolution:

Common Disputes:

Rate disagreement: Invoice doesn't match agreed rate
Detention not paid: Broker disputes hours claimed
Damaged freight: Broker wants offset for damage
Lumper fees: Broker won't reimburse

Documentation is Key:

Have signed rate confirmation showing rate
Have time-stamped check-in/out for detention
Have photos and inspection reports for damage claims
Have receipts for lumper fees (if reimbursement agreed)

Resolution:

Discuss professionally with broker
Provide supporting documentation
Compromise if reasonable
If unresolved, consider TIA arbitration

Detention and Accessorial Charges

Detention (Waiting Time):

Standard Terms:

Free time: First 2 hours (typical)
Detention rate: $25-$75/hour after free time
Must be specified in rate confirmation

Documentation:

Time stamped check-in at gate/office
Time stamped departure after loaded
Signed detention slip from shipper/receiver (best)

Invoicing:

Calculate hours over free time
Multiply by agreed rate
Add to invoice as separate line item
Attach time stamps or detention slip

Example:

Arrived: 8:00 AM (signed in)
Departed: 1:30 PM (loaded)
Total time: 5.5 hours
Free time: 2 hours
Detention: 3.5 hours × $50/hr = $175

Other Accessorial Charges:

Lumper Fees:

Unloading service at receiver
$100-$500 typical
If rate confirmation says "lumper reimbursable," invoice it
Attach receipt

Tarp Fees (Flatbed):

$50-$150 per load
If agreed in rate confirmation

Layover:

Driver waiting overnight for load/unload
$100-$200/day typical
Must be agreed in advance

Conclusion

Efficient billing and invoicing is essential for healthy cash flow and business growth. Modern software automates the process, reduces errors, and integrates with factoring for fast payment.

Key Takeaways:

Software Options:

✅ Integrated TMS: Best for mid-large fleets
✅ Standalone tools: TruckLogics, ProTransport for small fleets
✅ Accounting software: QuickBooks, Xero (with manual entry)

Factoring Integration:

✅ Automatic invoice submission
✅ Payment in 1-2 days vs. 30 days
✅ Better cash flow

Best Practices:

✅ Submit invoices within 24 hours of delivery
✅ Verify all documents before submission
✅ Track payment status diligently
✅ Follow up on overdue payments
✅ Document detention and accessorials

"Fast, accurate invoicing is the engine of cash flow. Automate it, track it, and get paid."

Continue Learning:

Master billing systems for better cash flow. Continue your education at Carriversity.