Companies operating in the transport logistics industry, such as airlines, railways and shipping companies, face a number of accounting and operational issues that can impact profits. This is why it is so important to follow best accounting practices to manage their cash flow and liquidity. Take accounting courses in Yekaterinburg.
Logistics companies have always had to deal with uncertainty regarding operating costs. Fluctuations in oil prices and shipping costs can greatly impact their profit margins and the profitability of their freight rates.
In addition, shipping companies are under intense pressure from consumers to keep up with changing expectations in today's digital world. The modern consumer wants instant gratification, and as a result, there has been a rise in “next day delivery” and even “same day delivery”.
The Covid-19 pandemic has potentially accelerated the move towards online shopping, meaning increased demand for goods delivered quickly.
To better cope with increasing pressure and demand, logistics companies need to adopt the following advanced accounting practices:
Adhere to International Financial Reporting Standards (IFRS)
IFRS are accounting standards issued by the International Accounting Standards Board (IASB). Their purpose is to provide guidance on how companies should prepare and disclose financial statements so that they are reliable, fair and comparable with other similar organizations around the world. The standards are based on a principled approach that provides a global framework that is widely considered best practice.
It is especially important for logistics and transport companies to comply with IFRS as many of them operate internationally and engage in cross-border transactions. Additionally, having a common set of accounting standards makes it easier for investors to understand a company's financial statements and be able to identify investment opportunities.
The simplified system in cargo transportation provides two options for paying taxes
In the first case, the tax rate is 6%, and the object here is the income of the enterprise.
And in the second, the object is the income of the transport company minus expenses, but the rate in this case is 15% (the tax amount cannot be less than 1% of the tax base). At the same time, the cargo transportation company can independently select an object and also change it.
The advantages of this system:
Using a simplified taxation system, a cargo carrier company does not pay the following taxes: on profit (for an individual entrepreneur the need to pay tax on personal income is excluded), on value added, on property.
In the event that a company does not independently choose a tax system and does not notify the tax office of the chosen method, then this taxation system is selected automatically and will be the Basic Taxation System.
Negative points:
Expenses with this accounting method can only be taken into account from the approved list of expenses, in accordance with Article 346.16 of the Tax Code of the Russian Federation. Even if your expenses amounted to a large portion of your income, you need to pay a minimum tax of 1% of the income received.
Use modern accounting software
Many companies today still rely on old accounting software that cannot fully meet the needs of modern businesses. Companies are dealing with an increasing amount of data that must be processed and recorded accurately in order to provide meaningful information to all stakeholders who may use the information. Legacy accounting systems cannot cope with large volumes of data and this can lead to ineffective decision making.
New cloud-based accounting software offers a wide range of useful features, including artificial intelligence and business analytics. These more advanced systems can automate manual tasks, promote collaboration, and integrate with other business systems to improve efficiency. Cloud-based systems can be especially useful for firms in the logistics industry that deal with a diverse range and high volume of transactions.
Types of taxation in the field of transport services
General system - involves maintaining accounting records in full and paying all major taxes, such as VAT in the amount of 20%, income tax in the amount of 20%, property tax in the amount of 2.2%. A company that cannot use the simplified system applies the general tax payment system in its activities. Individual entrepreneurs (freight transportation) pay taxes under this system both on the income of individuals and on added value.
The advantages of this system:
I work with large suppliers, you can take VAT into account and reduce yours.
Negative points:
The general tax payment system is considered the most burdensome; if possible, it is recommended to switch from it to a simplified one.
Since with this system it is necessary to maintain complete tax and accounting records, prepare and submit not only annual but also quarterly reports and pay taxes on time.
| Accounting for individual entrepreneurs and LLCs Cost: 10,000 - 12,000 rubles. (all inclusive)
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Procedure for filling out 1-TP
Instructions for filling out and the form can be found in Rosstat Order No. 564 dated August 31, 2017.
1-TP consists of a title page and three sections.
The name of the respondent, legal and postal address with index are noted on the title page. The first sheet already contains the OKUD code; the company just needs to enter its OKPO code.
Section 1
The information in this section is shown as of the end of the year.
All vehicles specified in the section must be capitalized and registered with the traffic police. The type of car is determined by its registration certificate.
Rented and leasing vehicles are not taken into account in this section.
The third column records the number of vehicles, including those under repair, for rent. Technically serviceable cars are shown in column 4. Vehicles that are awaiting repair or are being serviced, cars without tires are not taken into account in column 4.
From the total number of cars, columns 5 and 6 highlight the number of cars equipped with GLONASS and GLONASS/GPS satellite navigation equipment.
Line 100 is the sum of lines 101-107. The indicated lines show dump trucks, cargo vans, tanks, timber trucks and other body structures. Pickup trucks and passenger vans are not included.
Line 108 shows tractor vehicles designed for permanent work with a semi-trailer.
According to lines 109–112 (from line 100), trucks are distinguished depending on the engine design and type of fuel. In line 109 you need to show vehicles running on gasoline, in line 110 - on diesel fuel, and on line 111 - on gas. Line 112 indicates vehicles running on other types of fuel. If you add the data from lines 109–112, you should get the figure indicated in line 100.
According to lines 113-115, vehicles recorded in line 100 are divided into categories depending on the maximum weight of the vehicle (the maximum permissible weight of the equipped vehicle along with cargo). According to GOST, there are three categories:
- Freight transport weighing up to 3.5 tons.
- Freight transport weighing from 3.5 tons to 12 tons.
- Freight transport weighing more than 12 tons.
Line 116 identifies the number of trucks equipped for the transportation of dangerous goods. If the car transports goods to another city or country, it must be shown in line 117.
Line 120 indicates the number of light-duty trucks and utility vehicles with bodies built on passenger car chassis.
Line 130 shows different types of semi-trailers that are connected to tractor units. Also in this line you should take into account spare semi-trailers (tippers, vans, container ships, tanks and others).
On line 131 the number of container semi-trailers is recorded, on line 140 - the number of trailers (flatbed, dump, etc.), on line 150 - the number of special-purpose vehicles.
Section 2
This section is filled out even by those companies for which cargo transportation is not their main activity.
You need to take into account freight vehicles owned, rented, or leased.
Vehicle-days are given in whole numbers, other indicators are given with one decimal place (accurate to 0.1).
Transportation and operating indicators of trucks are reflected in the form by type of movement: city, suburb, intercity and international traffic.
Line 210 shows the days the vehicle is at the company’s disposal separately for each vehicle. Weekends and holidays are taken into account. If the machine worked in several shifts during the day, then this time is considered one vehicle-day.
Lines 220 and 240 show the total volumes of cargo transportation and cargo turnover carried out on public roads.
Transportation of passengers in trucks is not recorded in the report.
The volume of cargo transported on public roads in tons and ton-kilometers is not taken into account:
- when using vehicles not for cargo transportation, but for maintenance of power lines and pipelines;
- when transporting non-commercial goods (snow, household waste, construction waste, etc.);
- when using vehicles for scientific research and geological exploration;
- if the car transports mail, newspapers, magazines.
Freight turnover is equal to the sum of the products of the weight of the cargo for each trip and the transportation distance for each trip.
Example of cargo turnover calculation:
On May 14, 2021, 5 rides were completed:
- first ride: 2 tons over a distance of 16 km;
- second trip: 6 tons over a distance of 25 km;
- third ride: 5 tons over a distance of 9 km;
- fourth ride: 4 tons over a distance of 11 km;
- fifth trip: 13 tons over a distance of 22 km.
Cargo transportation = 2 + 6 + 5 + 4 + 13 = 30 tons.
Cargo turnover = (2 t x 16 km) + (6 t x 25 km) + (5 t x 9 km) + (4 t x 11 km) + (13 t x 22 km) = 557 t.km
Transportation for a fee is separated from lines 220 and 240 and reflected in lines 221 and 241.
In lines 222-234, the transportation of certain types of raw materials and supplies is noted. For example, line 228 records the transportation of cement, and line 231 records grain.
Dangerous goods are also listed as a separate line (line 235). Cargo transported in containers, packages, semi-trailers is recorded in lines 236-238, respectively.
In line 250 you need to show the mileage of vehicles for the year, and in line 251 - the mileage with cargo.
The total mileage can be determined from the odometer; in addition, the daily mileage is reflected in the car's waybill.
Specifics of transportation costs
When taking into account the costs associated with transportation, the following things deserve attention:
- The vehicles used must be reflected in the accounting: on the balance sheet, if they are owned or leased and taken into account on the balance sheet of the recipient, or off the balance sheet, if they are rented or leased and taken into account on the balance sheet of the lessor. This will allow us to reasonably take into account all the costs of their maintenance.
We will talk about off-balance sheet account 001 “Leased fixed assets” in this article.
- Vehicles must be registered with the carrier: permanent, if the vehicles are owned, or temporary, if they are rented or leased. The presence of this registration (even when it is temporary) obliges the carrier to charge and pay transport tax.
Find out how to calculate transport tax by following the link.
ATTENTION! From January 2021, starting with the payment for 2021, tax authorities will independently calculate the amount of tax for your company. You no longer need to submit a transport tax return. Details are here.
What to do if you do not agree with the tax calculation is described in a typical situation from ConsultantPlus. Get free demo access to the K+ legal reference system to find out all the details of this procedure.
- The inclusion of fuel and lubricants necessary for the operation of vehicles into expenses is carried out in accordance with the approved standards for their write-off. These standards are either approved by law (and must be applied to certain industries) or developed by the company independently. This requires the organization of accounting for fuel consumption for each vehicle and the application of an appropriate write-off algorithm with attribution of excess consumption to costs that do not reduce the profit base.
For the procedure for accounting and writing off fuel and lubricants, see here.
- The safety of vehicles in winter conditions depends on the use of special tires designed for more than one winter. It will become necessary to organize not only the repeated issuance of these tires from the warehouse, but also their acceptance for storage for the summer period with the appropriate reflection of these operations in accounting.
- Indispensable components of costs will be the following expenses: for vehicle insurance, which will be included in the costs in parts during the validity period of the insurance policy;
- periodic technical inspection of vehicles;
- carrying out regular maintenance;
- mandatory initial (upon hiring) and pre-trip medical examinations of persons driving vehicles;
Learn the nuances of medical examinations for transport company employees from the material “Pre-trip medical examination of drivers.”
- payment for special breaks in work intended for rest for persons driving transport;
- services for loading and unloading, weighing cargo, cleaning vehicles;
- payment for travel on toll roads, for entering the territory of enterprises, storage of goods, use of access roads, delivery of wagons.
