Manufacturers often face rising transportation expenses as every shipper works to manage complex logistics, rising fuel prices, and thousands of shipments moving across the supply chain—often without realizing that many extra charges come from errors, overlooked details, or incorrect carrier billing. In fact, a large‑scale analysis of nearly 250,000 LTL invoices found that about 4.5% of the bills contained billing issues — and nearly 43% of those errors involved incorrect accessorial charges.
An invoice review process gives companies a simple way to verify invoice data, spot discrepancies, and catch issues caused by human error or a broken payment process. It also improves supply chain visibility by pulling shipping data from the TMS, ERP, or spreadsheets into one clear audit path—making it easier to find hidden fees, correct mistakes, and stay in control of costs.
This blog breaks down why audits matter, how carrier compliance issues create unnecessary costs, where most logistics costs hide inside freight bills, and how stronger freight accounting protects your margins.
Why a Freight Invoice Audit Is Essential for Today’s Manufacturers
Before teams can control costs and improve accuracy, they need a clear view of what a regular audit actually delivers. These points explain why an invoice review is one of the most effective ways to strengthen financial performance:
- Catch billing errors early — Prevent mistakes caused by rushed processing, missing bill of lading details, incorrect cost allocation codes, or human error.
- Avoid unnecessary overspending — A structured review helps ensure every shipment is billed at the agreed-upon rate, reducing surprise charges.
- Improve cost savings — A consistent audit routine keeps logistics costs under control and supports better decision-making.
- Strengthen financial oversight — Clear audit steps help teams improve freight accounting accuracy across the entire supply chain.
Together, these benefits show why regular invoice reviews play a critical role in reducing costs, improving control, and supporting long-term financial health.
How Carrier Compliance Issues Lead to Unexpected Fees and Overcharges
Problems with carrier compliance are one of the biggest reasons companies face surprise charges on their freight bills, especially when the shipping process involves multiple handoffs between a truck carrier, a third-party provider, or a payment provider offering outsourced payment services.
Here are the most common issues:
- Invalid accessorial charges — Carriers may bill for services that were never performed, and poor carrier compliance oversight makes these errors easy to miss.
- Missed service commitments — Late deliveries or missed appointments can lead to extra costs when carrier compliance does not match agreed service terms.
- Incorrect weight or classification — Mistakes in freight classification can inflate logistics costs without being noticed.
- Unapproved rate changes — Some carriers add charges outside the contracted agreement, which an invoice accuracy audit quickly flags.
- Documentation errors — Missing or incorrect paperwork can trigger reprocessing fees and delays.
These problems show why companies must treat carrier compliance as a core part of their freight review process and why pairing compliance checks with a audit of freight charges prevents unnecessary expenses.
The Hidden Logistics Costs Most Companies Miss in Their Freight Bills
Understanding hidden logistics costs helps teams identify shipping cost fluctuations caused by fuel prices, accessorial fees, outdated discount structures, or lading details captured incorrectly at pickup and delivery—helping companies avoid paying for items that add no real value.
Below is a comparison of how companies respond when they do—or do not—monitor their freight bills.
When companies monitor every invoice:
- Duplicate charges are caught early during the freight invoice audit.
- Vague or unclear line items are reviewed instead of being paid automatically.
- Hidden fees tied to poor carrier compliance are removed.
- Teams gain clearer visibility into true logistics costs.
- Better records support stronger freight accounting and reporting.
When companies do not track invoices closely:
- Duplicate or repeated fees often go unnoticed.
- Hidden surcharges become recurring expenses.
- Carrier compliance problems continue without correction.
- Logistics costs grow without explanation or accountability.
- Freight accounting teams struggle to match charges to actual service.
This section shows how much money manufacturers can save by strengthening invoice oversight.
How Better Freight Accounting Improves Accuracy and Protects Your Margin
A stronger freight accounting process helps prevent mistakes, eliminate manual processes, and ensure compliance with regulatory and payment company requirements across complex logistics networks. These improvements also reduce overbilling and support long-term financial health. Below are simple steps companies can use:
Step 1: Standardize your audit process
Create a repeatable checklist for every freight invoice audit so teams can verify shipment details, cross-check transportation management records, and flag any discrepancies tied to outsourced payment services.
Step 2: Compare charges against contracted rates
Review each invoice against the agreed-upon rate, bill of lading details, and carrier service terms. This helps reveal carrier compliance issues early and stops overbilling before payment is issued.
Step 3: Track recurring issues
Identify repeated discrepancies caused by inaccurate shipment data, human error in accounts payable, or cost allocation problems. If the same logistics costs appear multiple times, investigate the root cause and document findings.
Step 4: Strengthen documentation control
Accurate paperwork supports stronger freight accounting, helps a shipper conduct cleaner audits, and reduces risk in the payment process by ensuring every invoice matches both the bill of lading and the agreed-upon terms.
Step 5: Automate where possible
Technology can streamline the freight invoice audit process by using a TMS or ERP to track discrepancies, optimize auditor workflows, and support outsourcing options that help companies simplify complex logistics billing and reduce manual errors.
When companies follow these steps consistently, freight accounting becomes more accurate, predictable, and effective at protecting margin.
Build a Smarter Freight Audit Process
We understand how frustrating it is for manufacturers to pay more than they should because of hidden charges, unclear invoices, or preventable carrier errors. A strong freight invoice audit program helps manufacturers uncover hidden fees, correct billing issues, and improve overall cost control.
Visigistics helps teams build structured audit processes, improve carrier compliance, and reduce unnecessary logistics costs through better visibility and stronger financial oversight.
If you’re ready to improve freight accounting accuracy, eliminate avoidable charges, and protect your margins, contact Visigistics today to build a smarter, more reliable audit process.
