Accounting for Freight

by Steven M. Bragg

The cost of freight plays a significant role in the reported profitability of many businesses that deal in tangible goods. It may be added to the cost of inventory and fixed assets, or reported separately for lesser amounts, and may be billed through to customers - perhaps with a profit margin added to it. In the Accounting for Freight manual, we explore all aspects of the accounting for freight, including the treatment of freight-in and freight-out, its presentation in the financial statements, applicable controls, and more.