The Financial Management System of the Freight Forwarders Industry

Abstract

The role of a freight forwarder in today's modern society is a simple yet important one as they make the transportation of goods possible all over the world at any time. Given the complexities of global trade, maintaining the best financial management practices can be challenging, but freight forwarders know that including best practices into the operational equation isa cornerstone of success. This study was conducted to assess the level of effectiveness of the financial management of freight forwarders industry. It is founded based on existing theories and principles written by different authors and is framed generally from managerial finance, Philippine Accounting Standards (PAS) and Philippine Financial Reporting Standards (PFRS). The descriptive method was adopted in this study. A total of 568 accredited Freight forwarders in National Capital Region comprised the study population of which 238 was the sample size. A pilot study was conducted to test the reliability of the questionnaire. Subject matter experts were consulted to ensure the content validity of the research instrument. Data were collected using self-administered questionnaires. Descriptive statistical tools included frequencies, percentage, means, and analysis of variance. Based on the findings, the level of effectiveness of financial management practices when grouped according to profile in all aspects were effective while the majority of the respondents' assessment was significant. The study recommends that best practices be implemented by freight forwarders like proper and stronger internal controls and financial handlers should strengthen their awareness towards these practices while guided by existing laws and standards.