Evaluating Third-Party Logistics Providers

Consolidation of Sustainability Reporting Standards 🌎 The landscape of sustainability reporting is shifting towards greater clarity and consistency. With multiple frameworks guiding corporate disclosures, the integration of these standards is key to easing the reporting process for companies and enhancing transparency for investors. The International Sustainability Standards Board (ISSB) is at the forefront of this effort, aligning with established frameworks like the Task Force on Climate-Related Financial Disclosures (TCFD) to streamline reporting guidelines. This alignment makes it easier for companies to report climate risks in a standardized format, improving consistency across the board. The International Financial Reporting Standards (IFRS) Foundation plays a critical role by merging several reporting frameworks, including the Climate Disclosure Standards Board (CDSB) and the Value Reporting Foundation (VRF). This consolidation reduces complexity, allowing companies to focus on one core set of standards rather than navigating multiple, overlapping guidelines. The Global Reporting Initiative (GRI) complements the work of ISSB by offering additional insights into social and governance factors. Together, these frameworks help companies address a full range of sustainability topics while maintaining compatibility with financial reporting needs. The Carbon Disclosure Project (CDP) also provides a foundation for climate-related disclosures. By building on CDP’s standards, these integrated frameworks offer companies a unified approach to reporting their environmental impacts in a way that is accessible and useful for stakeholders. Overall, the consolidation of these standards not only simplifies reporting but also promotes interoperability, enabling companies to share consistent, reliable data that meets global expectations. This unified approach is essential in building trust and transparency across industries and driving sustainable business practices. Source: IBM #sustainability #sustainable #business #esg #climatechange #climateaction #reporting

📝 Checklist for Contract Review | Follow Ilamparithi BoologaSundaraVijayan 1️⃣ Parties   Are the parties clearly identified, and are the signatories authorized to commit to the agreement? 2️⃣ Scope of Work   Is the scope of work clearly defined and comprehensively described? 3️⃣ Acceptance   Has the offer been formally accepted by the relevant party? 4️⃣ Consideration and Responsibility   Does the contract state the consideration (what each party will get in return) and outline the responsibilities of each party? 5️⃣ Delivery   Does the contract specify delivery timelines, including dates and milestones? 6️⃣ Payment Terms   Are the payment terms and conditions clear and defined? 7️⃣ Variation/Change Orders   Does the contract outline the process for requesting and approving changes or variations to the scope of work? 8️⃣ Dispute Resolution   Are there clear steps for resolving disputes, including negotiation, mediation, or legal recourse? 9️⃣ Force Majeure   Does the contract address what happens in the event of unforeseeable circumstances that prevent contract performance? 🔟 Expiry Dates   Does the contract mention the contract duration or expiry dates? 1️⃣1️⃣ Renewal Terms   Are there provisions for contract renewal? 1️⃣2️⃣ Penalties/Fees   Does the contract define penalties or fees for non-compliance or failure to meet obligations? 1️⃣3️⃣ Insurance and Warranty   Are the necessary insurance and warranty provisions included and clearly defined? 1️⃣4️⃣ Default Clause   Does the contract outline specific breaches or default circumstances? 1️⃣5️⃣ Termination Clause   Are the conditions for contract termination specified, along with available remedies for the non-breaching party? 1️⃣6️⃣ Confidentiality Clause   Is there a confidentiality agreement included, and are the penalties for breaches specified? 1️⃣7️⃣ Arbitration Clause   Does the contract include clear arbitration procedures, including the selection of arbitrators? 1️⃣8️⃣ Choice of Law Clause   Does the contract address governing law, particularly if cross-jurisdictional issues arise? 1️⃣9️⃣ Limitation of Damages   Are the types and amounts of recoverable damages clearly defined?

Origin is origin. It doesn’t matter if your shipment is routed through Canada, Mexico, or any other country. If the product was manufactured in China, it remains ineligible for de minimis (Section 321 / T86). The country of origin is determined by where the goods were made, not where they were shipped from. And here’s the kicker: If even one product in the shipment has Chinese origin, the entire shipment loses its de minimis eligibility. So, what does this mean for your duties and taxes on Chinese-origin goods? It means they just got expensive. When you file through Entry Type 11 or 01, here’s the breakdown of what you could be facing: - Normal Tariff - Section 301 Tariff (if applicable) - Additional 10% Tariff (always applicable) - Merchandise Processing Fee (MPF) (min/max varies based on entry type & value, $2-$600+) - & potentially other fee's based on product and mode (think HMF, AD, etc.) The costs can add up quickly, but staying compliant is the only way to avoid penalties and delays. Tips to Stay Compliant: - Know and validate the country of origin. Don’t rely on where the shipment is coming from. - Provide detailed descriptions and ensure accurate HTS classifications. The landscape is complex and the game has changed. Have questions about de minimis or duties? THere's a wicked smart community here and my DM's are always open. Stay safe out there and remember, compliance matters.

When a product is refused or seized at the border, most people jump straight to asking what was wrong with the goods? But the better question is what broke down in your process before that shipment even left the supplier’s facility? Compliance is not only about what's in the box” or what is printed on the label. It is also about who you are doing business with, how well you know them, who has had access to the box, and whether you can trust that the paperwork matches reality. Sometimes, it is not the product that triggers a seizure. It is the involvement of a flagged party or a questionable transaction. To reduce the chances of costly delays or seizures, companies need to focus on full compliance at every step. That includes having accurate labels, correct country of origin markings, valid certificates, knowing your supply chain, and making sure the product is not violating the rules of any federal agency. Customs enforces more than just customs law. If your product violates FDA, EPA, DEA, CPSC, USDA, “ABCD” requirements, it is at risk. Many companies miss this entirely. Want to see what this actually looks like in practice? I explain it all here: https://lnkd.in/ekAZPMkZ #FDACompliance #CustomsSeizures #ImportLaw #ProductLabeling #CBP #RegulatoryStrategy

Understanding the Balance Sheet A balance sheet is a fundamental financial statement that provides a snapshot of a company's financial position at a specific point in time. It is an essential tool for investors, creditors, and analysts to assess a company's solvency, liquidity, and overall financial health. The balance sheet follows the accounting equation, which states that assets equal liabilities plus equity. In this article, we will delve into the components of the balance sheet and explore their significance in evaluating a company's financial stability. Components of a Balance Sheet: 1. Assets: -Current Assets: These are assets expected to be converted into cash or used up within one year. Examples include cash, accounts receivable, inventory, and short-term investments. -Non-current Assets: Also known as long-term assets, these are resources with a useful life of more than one year. Examples include property, plant, equipment, intangible assets, and long-term investments. 2. Liabilities: -Current Liabilities: Debts and obligations due within one year, including accounts payable, short-term debt, and accrued expenses. -Non-current Liabilities: Long-term debts and obligations that extend beyond one year, such as long-term loans, bonds, and deferred tax liabilities. 3. Equity: -Shareholders' Equity: This represents the residual interest in the assets of the company after deducting liabilities. It includes common stock, additional paid-in capital, retained earnings, and other comprehensive income. Analyzing the Balance Sheet: 1. Liquidity Ratios: - The balance sheet helps calculate key liquidity ratios like the current ratio (current assets/current liabilities) and the quick ratio (quick assets/current liabilities). These ratios assess a company's ability to meet short-term obligations. 2. Debt Ratios: - Examining the proportion of debt to equity (debt-to-equity ratio) or total assets (debt ratio) provides insights into a company's leverage and financial risk. 3. Asset Turnover: - The balance sheet aids in calculating asset turnover ratios, which measure how efficiently a company utilizes its assets to generate revenue. 4. Book Value: - Shareholders' equity on the balance sheet helps determine the book value per share, serving as a benchmark for evaluating a stock's intrinsic value. 5. Financial Health Assessment: - A strong balance sheet with healthy levels of assets relative to liabilities signifies financial stability and resilience during economic downturns. #accounting #balancesheet #accountant #accountingtips #accountingservices #freshers

When disaster strikes, every second counts. Traditional emergency response relies on human coordination, which can be overwhelmed in rapidly evolving situations. But what if we could empower responders with intelligence that predicts, adapts, and guides decisions in real-time? AI is no longer a futuristic concept; it's a critical tool enhancing emergency management today. From predicting wildfire spread in Australia's bushfire seasons to optimizing evacuation routes during floods in Pakistan, AI-powered solutions are transforming how we react to crises. How AI is revolutionizing emergency response: Predictive Analytics: AI models analyze vast datasets to forecast disaster trajectories, allowing for earlier warnings and more precise resource deployment. Real-time Decision Support: Algorithms can process live sensor data, social media feeds, and weather patterns to provide commanders with actionable insights, optimizing resource allocation and saving critical time. Automated Communication: AI can rapidly disseminate hyperlocal alerts, translate urgent messages, and even manage initial public inquiries, ensuring communities receive vital information swiftly. Optimized Logistics: AI can identify the fastest routes for emergency vehicles, manage supply chains for relief efforts, and prioritize aid distribution based on real-time needs. This integration of artificial intelligence empowers emergency managers to make smarter, faster, and more effective decisions, turning chaos into a controlled response. Is your emergency response strategy leveraging the power of AI? Explore how intelligent solutions can enhance your readiness.

Understanding Financial Health: Key Ratios for MSME Lending !! When evaluating an MSME for credit, a lender doesn’t just look at revenues or profits—they dig deeper into the balance sheet to assess financial stability, risk, and repayment capacity. Here are 5 key financial ratios that form the backbone of credit analysis for MSMEs: 1️⃣ Current Ratio ->> Formula: Current Assets / Current Liabilities Why it matters: Indicates short-term liquidity. A ratio >1.33 is often seen as a sign of good financial health. 2️⃣ Debt-to-Equity Ratio ->> Formula: Total Debt / Shareholder’s Equity Why it matters: Measures financial leverage. A lower ratio reflects conservative debt usage—ideal for unsecured or term lending. 3️⃣ DSCR (Debt Service Coverage Ratio) ->> Formula: Net Operating Income / Total Debt Service Why it matters: Reflects repayment capacity. A DSCR of >1.25 is generally preferred by lenders. 4️⃣ Fixed Asset Coverage Ratio ->> Formula: (Gross Block - Depreciation) / Term Loan Why it matters: Ensures the business has adequate fixed assets backing the loan. 5️⃣ Net Worth to Total Outside Liability (TOL/Net Worth) ->> Formula: Total Outside Liabilities / Net Worth Why it matters: Indicates the long-term financial strength of the borrower. Why MSMEs must track these: These ratios are not just numbers for banks—they are insights into sustainability, growth capacity, and risk appetite. MSMEs preparing for funding must keep their financials clean and ratios healthy. Start preparing your balance sheet not just for tax filings but also for funding opportunities! #MSMEFinance #FinancialRatios #BalanceSheet #CreditAnalysis #MSMEIndia #NBFC #WorkingCapital #SMELending #Findestination Findestination

Essential Techniques: Effective Cash Flow Forecasting Effective cash flow forecasting is crucial for financial stability and planning future growth in banking. Accurate forecasting ensures banks can meet obligations, manage unexpected expenses, and seize opportunities. Forecasting starts with analysing historical data to identify patterns and trends, aiding in accurate predictions. Scenario planning involves developing best-case, worst-case, and most-likely scenarios to prepare for various financial situations. Rolling forecasts, which involve continuously updating projections with the latest data, allow banks to adjust forecasts based on changing market conditions and business activities. Detailed categorisation of cash flow into operational, investing, and financing activities helps identify areas needing attention or improvement. Technology integration enhances forecasting accuracy and efficiency. Advanced financial software, including artificial intelligence and machine learning, analyses vast amounts of data to identify patterns and provide precise forecasts. This streamlines forecasting processes and enables data-driven decisions. Collaboration across departments is crucial. Input from sales, operations, and finance ensures all relevant data is considered, fostering shared responsibility and informed decision-making. Monitoring economic indicators like interest rates, inflation, and market trends is essential for anticipating changes that could impact cash flow. Stress tests evaluate the bank’s cash flow under extreme conditions, simulating adverse scenarios to assess resilience and identify vulnerabilities. This allows treasurers to develop contingency plans to ensure financial stability. Regular review and adjustment of cash flow forecasts maintain accuracy and relevance. Forecasts should be updated to reflect actual performance and changes in the business environment, ensuring alignment with financial goals and market conditions. Engaging stakeholders, including senior management and board members, ensures alignment with strategic objectives. Transparent reporting builds confidence and facilitates informed decision-making, supporting the bank's overall strategy and long-term success. In summary, effective cash flow forecasting combines historical analysis, scenario planning, continuous updates, and technological integration. By employing these techniques, banks can achieve accurate predictions, better financial management, and preparedness for future challenges and opportunities. These practices are essential for maintaining financial stability and achieving long-term success in the dynamic banking environment.

Overview of data requirements of ESRS: The information companies need to provide, assess and report if they find ESRS material (high-level summary) The European Sustainability Reporting Standards (ESRS), under the Corporate Sustainability Reporting Directive (CSRD), provide a structured framework for companies to disclose sustainability-related information. This chart presents reporting requirements across ESRS, categorizing sustainability topics into environmental (E), social (S), and governance (G) dimensions, including sub-topics. However, this is not the full picture, as companies must also conduct a materiality assessment to provide relevant information for stakeholders. It highlights where policies, actions, targets, transition plans, and key metrics are mandatory. At a topical level, if an organization deems a data point immaterial, it does not have to report on it. A sustainability topic must typically be reported under a specific disclosure requirement to become actionable. Reliable reporting requires diligent systems, operating procedures, and data manuals. Companies must conduct a double materiality assessment to determine whether a sustainability matter has a significant financial impact or affects people and the environment. The chart outlines ESRS reporting requirements, including policies, actions, targets, and transition plans. For example, Environmental Topics (E1-E5) require both policies and targets for CSRD compliance and GHG reductions, and a reporting on plans, investments, and levers (by e.g., including CapEx and OpEx-planning from EU taxonomy). Gaps exist between commitments and implementation. However, since CSRD is a reporting directive, it does not mandate specific actions. Sustainability reporting must go beyond commitments and include measurable actions. Each policy should have specific objectives linked to measurable targets for accountability. The Social Standards (ESRS S1-S4) and Governance Standard (G1) are policy-based. CSRD and ESRS require reporting on human rights, labor conditions, and social responsibility, referencing OECD and UNGP. SMEs must prepare for extended supplier reporting obligations. Policies must be implemented via transition or action plans to support long-term sustainability. Companies must assign accountability for each material sustainability matter. Hopefully once implemented and transposed, the Corporate Sustainability Due Diligence Directive (CSDDD) will work alongside CSRD, requiring businesses to integrate ESG into corporate governance. Looking forward to see a lot of new ESRS reports in the coming months!