Road transport is a mode of transporting passengers and goods by using roads. Businesses operating in this complex industry like haulage, logistics, and road transport face severe kinds of challenges by the taxation and regulatory authorities. Some of the key issues that such businesses face are:
- Tax problems due to the personal usage vehicles by the drivers
- Reclaiming the input VAT on fuel and other relevant expenses
Because of such high risks involved in this sector, respective businesses require specialist accounting and tax management support by a firm with deep knowledge of the risks and issues in the industry, and ways to avoid such issues and risks.
What do ProAccountax Offer?
To provide you best possible accountancy services, ProAccountax welcomes you to transfer your accounting headaches to our experts and get the best solutions up to the needs of your businesses.
The diverse experience of our team of accounting and taxation specialists allows us to make sure that you can gain maximum in the form of input vat on all of your claimable expenses by choosing the best-fit VAT program for your businesses.
We are supporting you to measure and claiming mileage allowances in the case of usage of personal vehicles for regular business operations.
ProAccountax is also aware of several other sole issues tangled in the logistics, shipping, and road transport sector like:
- Permitting problems of drivers and damages due to accidents
- Issues with cash flow management due to regular sale and purchase of vehicles
- Heavy Indemnification expenses of means of transportation and loss reporting due to mishaps
An expert team of accounting professionals by ProAccountax can also fulfill your following needs exceptionally:
- Monthly or quarterly cash flow inspections in order to provide detailed information and statistics about the trends in your cash flow to enable you to make better decisions.
- Support for selecting the right insurance scheme to feel you more protection and comfort from losses due to accidents and legal complications
Industry-Specific International Financial Reporting Standards
Along with these risks and issues, businesses related to road transport, logistics and haulage sector are also vulnerable to face multiple complexes yet industry-specific International Financial Reporting Standards. ProAccountax’s team of accounting and financial management experts have sufficient knowledge and required expertise and skills to cope with International Financial Reporting Standards, particular to the transport and logistics sector. Some of the key international financial reporting standards that are of key importance for this sector’s businesses are:
IAS 17 – Leasing
There are certain types of leases in reference to this leasing standard.
A lease contract in which all the jeopardies and recompenses of ownership allocation substantially to the leaser, and too give upsurge to asset and liability credit by the lessee and receivables in the accounts of the leaser.
It is a lease settlement in which the asset remaining acknowledged by the leaser and upshot in expenditure credit by the lessee.
- IFRIC 4 – It reinforces criteria in defining whether an organization holds a lease.
- SIC-15 – Operating Leases – Incentives
- SIC-27 – Assessing the matter of transactions in the legitimate procedure of a tenancy.
- IAS 16 — Property, Plant and Equipment
It recommends accounting management for plant, property, and equipment and determines the criteria for the initial recognition properties, their transportation values, impairment losses, and depreciation charges.
Evolving Changes in International Financial Reporting Standards
Businesses are required to keep their bookkeepers updated with the changing international accounting standards and evolving issues with accounting principles. They have to do so in order to enable them dealing with financial reporting and taxation matters in accordance with the evolving international financial standards. The administration should be knowledgeable of the IFRS standards and accounting doctrines that are under persistent change. Though not all such fluctuations are important to road transport, haulage, and logistics sector, however, some of these incipient changes will involve watchful contemplation and sound prepared application by your bookkeepers and administration working in the road transport and logistics sector. So this is indispensable for accountants & administration to have a noticeable understanding with future standards changes prospective to affect in many ways to the road transport and logistics sectors.
The most important areas that require exclusive consideration of administration and accountants including short-term and long-term strategies for the business, the profitable activities of present and future, communications with investors, procedures and controls of economic reporting and structure, working structures, procedures and employee drills and growth and present IT arrangements. Though fluctuations in IFRS are creating troubles for all kinds of industries, multiple challenges are unique to this transport and logistics sector. In this regard, ProAccountax has all the required skills and expertise to deal with such emerging issues that any business from the transport and logistics sector can face.
ProAccountax team is ever ready to grab the opportunity to be an effective part of your team in accomplishing your economic and commercial goals.