Transportation Industry Companies

Transportation companies involve the movement of goods, people, and animals from one location to another. Some examples of transportation companies include limousines, airlines, buses, trucking, railroad, and shipping & logistics. Transportation companies are strongly impacted by changes in the economy. The most important factors that impact companies in the transportation sector include fuel, oil, labor costs, government regulations, consumer demand, and other economic and environmental conditions.

transportation and logistics

Industry Challenges

The most common challenge we hear from owners of transportation companies is that managing the day-to-day operations of the company is very difficult due to thin margins. Over the years, it has become commonplace for many transportation companies to elect to outsource their back-office and accounting functions. This outsourcing allows transportation companies to focus on the fundamental and essential tasks to run the business while receiving top financial information and reporting from professionals with many years of experience.

CFO Strategies helps owners and managers of transportation companies better understand the current financial state of their business and the direction in which the business is going. By providing more detailed performance metrics, often referred to as key risk indicators or key performance indicators, management is in a better position to adjust their strategies for changing business conditions on a more timely basis.  

Some of the most valuable reporting CFO Strategies provide to transportation clients include, but not limited to: an in-depth analysis of revenue per mile, cost per mile, cost per driver, and revenue per driver. This valuable information allows management to better understand how the business is operating in order to make better strategic decisions, and if need be, adjust their business strategy. Because many transportation companies have slim profit margins, it is imperative that management knows its true costs and related profitability.

Analytics for Transportation & Logistics Companies

  • Cost, Revenue, and Gross Profit per zone
  • Revenue and Cost per vehicle
  • Gross Profit and Operating Income per vehicle
  • Revenue and Cost per Branch and Office
  • Gross Profit and Operating Income per Branch and Office
  • Gross Profit and Operating Income per Ride
  • Operating Income per ride
  • Revenue and Cost per ride
  • Cost per mile driven
  • Revenue per mile driven
  • # rides/month/year
  • # rides/office
  • # rides/branch
  • Tip credit and Merchant analysis

transportation industry spotlight

Other Deliverables For Transportation & Logistics Companies


Balance Sheet

Profit & Loss Statement (P&L)

Cash Flow Forecast

Annual Budget and Financial Business Plan

Earnings Forecast

General & Administrative (G&A) Expenses Vs. Budget

Accounts Payable Aging

Accounts Receivable Aging

Debt Covenant Compliance

Gain/Fade Analysis (Comparison of profit margins from period to period)

Development and analysis of KPIs (Key Performance Indicators)

Evaluation of Internal Controls and Development of Standard Operating Procedures (SOPs)

Comparison of actual results to the business plan 

Other Ad Hoc Reports requested by management


Additional Services CFO Strategies Provides


Work with lenders to obtain lines of credit

Identify and develop new banking relationships

Work together with outside 3rd parties (CPAs, Insurance, Regulators, auditors)

Assist in recruiting and training staff

Serve as a trusted business advisor

One-off projects such as mergers and acquisitions

Assist in implementing new regulations (PPP, EIDL programs)

Assist in Exit Strategies