Logistics & Freight Accounting in Singapore

Our Singapore logistics accounting services are built for companies at the heart of the global supply chain:

• Freight Forwarders: Companies coordinating air and sea freight for clients, managing documentation, customs clearance, and carrier payments.
• Third-Party Logistics (3PL) Providers: Businesses offering integrated warehousing, fulfillment, and transportation services, especially for the e-commerce sector.
• Shipping and Liner Agencies: Representatives for vessel owners, managing port calls, container logistics, and freight collection.
• Last-Mile Delivery & Courier Services: Companies focused on the final stage of delivery within Singapore, needing to manage a high volume of small transactions and driver payments.

From your first shipment, specialized logistics accounting is necessary. It becomes indispensable when:

• You Handle Your First International Shipment: This requires correctly applying GST rules, as international transport services are typically zero-rated, allowing you to reclaim input GST.
• You Begin Billing in Multiple Currencies: You need a system to manage foreign exchange fluctuations and record transactions accurately in SGD for tax and reporting purposes.
• You Need to Understand Shipment Profitability: To be profitable, you must be able to accurately calculate all associated costs (freight, customs, insurance, transport) for each individual shipment and compare it to your revenue.
• You Invest in Assets: Whether it's a warehouse or a delivery fleet, you need to manage depreciation schedules and financing arrangements.
• You Face an IRAS Audit: The logistics sector's complex GST treatment makes it a focus for tax authorities. Accurate, organized records are your primary defense against penalties.

Outsourcing logistics accounting provides access to a specialized skillset crucial for profitability in this asset-heavy, low-margin industry.

• Small Operators (low volume): S$700 - S$1,800 per month. This generally includes GST-compliant bookkeeping, bank reconciliations, and basic shipment profitability tracking.
• Medium-Sized Forwarders/3PLs: S$1,800 - S$4,500 per month. This level adds more detailed reporting, cost analysis, and management of more complex customs and multi-currency transactions.
• Large Logistics Firms: Custom pricing starting at S$4,500+, often including fractional CFO services for strategic advice on asset acquisition and operational efficiency.

The logistics industry in Singapore operates under strict customs and tax regulations, with significant risks for non-compliance:

• Incorrect GST Application: Incorrectly zero-rating a service that should be standard-rated (or vice versa) is a major compliance risk that can lead to significant GST liabilities and penalties from IRAS.
• Poor Cost Control: Without a precise understanding of all costs associated with a shipment, companies can easily quote unprofitable jobs, leading to financial losses.
• Cash Flow Gaps: The logistics industry often involves paying carriers and customs upfront while waiting 30-60 days for payment from clients. Without careful cash flow management, this can lead to a liquidity crisis.
• Customs & Trade Compliance: Errors in customs declarations can lead to fines, delays, and damage to a company's reputation as a reliable logistics partner.

Logistics finance is not generic business accounting. It requires a deep understanding of international trade, GST rules for transport, and the financial drivers of the supply chain. Finding an in-house accountant with this specific expertise is both difficult and expensive.

Outsourcing to YourLegal's logistics finance partners provides an immediate, expert solution. We implement systems to track the profitability of every shipment, ensure you are fully compliant with IRAS guidelines on GST for international services, and manage multi-currency transactions effectively. We provide you with the financial clarity needed to price your services competitively, make smart decisions about operational efficiency, and manage your cash flow effectively in a demanding industry. This allows you to focus on your core mission: moving goods efficiently and reliably for your clients.