That’s right—all those little slips of paper you keep in your glovebox are important to your trucking business! Every business has specific metrics that can be used to measure its health and performance, and for trucking, one significant metric is the average cost-per-mile. Determining the cost per mile is pretty straightforward; thus, business owners need to calculate the number of miles traveled in a month and divide it by fixed and variable costs. Owners looking for a quicker alternative can employ software in calculating their average cost per mile. Owner-operators with out-of-date financial records quickly realize how difficult it is to balance the books when transactions compile.
- There are plenty of truckers who put off these critical tasks until the end of the month.
- Accounting is more sophisticated and analytical than bookkeeping, and there’s often more at stake.
- For trucker drivers who prefer to spend their off-duty time resting up for their next long-haul trip, hiring a bookkeeper can be a great investment.
- For owners seeking to employ trucking bookkeeping software, the best platform depends on several internal factors, including the business stature, cost, and level of competency with technology.
IFTA compliance is one of the additional accounting responsibilities unique to trucking companies. Fortunately, it doesn’t have to take up too much time or energy if you plan ahead. For example, transportation management software, also known simply as trucking software, is a must-have for owner-operators. It serves as a digital hub and tax center from which you can manage all of your paperwork and filing responsibilities. The cash basis involves recognizing revenues when you receive payments and deducting expenses when you pay them.
Solutions
As a result, many truck drivers handle a significant portion of their bookkeeping without much assistance. For example, it’s usually best for a driver to keep track of their miles, fuel purchases, and meal expenses while on the road. Research credit cards and find one with a low-interest rate that doesn’t have an annual fee and, ideally, a generous rewards plan. Pay the balance in full every month to ensure you aren’t racking up additional business debt.
We also considered the available customer service options and how quickly the provider responds to a concern. You might consider upgrading to the Enterprise plan to offer customer and carrier self-service portals. Customers can log in to view their account information, shipments, and invoices, whereas carriers can access available loads, shipments you have dispatched with them, and amounts you owe them. New users have the choice of 50% off for three months or a free 30-day trial with no credit card required. Truckers must choose between the two fundamental methods of accounting, the cash and accrual bases.
If you’re also using truck management software, you can usually link the two and automate your IFTA responsibilities completely. The ever-expanding capabilities of modern software have made many aspects of business ownership significantly easier. You must be strategic about which tools you invest in to avoid wasting resources, but it’s worth utilizing in many areas. In addition to keeping records of your expenses, you should have documents that prove their validity, such as receipts, trip logs, and account statements.
- Join over 1 million businesses scanning receipts, creating expense reports, and reclaiming multiple hours every week—with Shoeboxed.
- IFTA was put into place to redistribute the tax to the states where the fuel is being used, not where it’s purchased.
- It is important to price your services right so that you can cover these expenses and make a profit.
- Taking notes also helps track all cash inflows and outflows, making it easier to chase down invoices.
Remote Books Online can simplify IFTA reporting, helping you stay in compliance and avoid penalties. It is important to price your services right so that you can cover these expenses and make a profit. You can also start with a small fleet and add to it as your company grows. This will free up your cash flow and let you scale as your business attracts new customers. The most important metric for all trucking companies is the average cost per mile, which can be extremely useful when it comes to decision-making.
Financial Statements
Our budgeting and forecasting tools can assist in setting realistic financial goals and making informed decisions about investments and expansion. Managing driver wages can be complex, especially when dealing with various pay structures. Our services can assist in calculating driver wages accurately and handling deductions, ensuring compliance with labor laws.
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Plus, if you do lose a receipt, you will still have the record in your files. If you’re experienced in bookkeeping and are managing a small or medium-sized trucking company, consider Q7. That’s why we’ve put together a few truckers’ bookkeeping tips to simplify your bookkeeping process.
Open a separate checking account for your business.
You may not always have time to document your transactions, and it can be easy to lose track of receipts. Small-scale businesses are, however, advised to stick to essential software. While these platforms might 8 considerations for a new major gifts campaign not be loaded with cutting-edge features, they incorporate crucial elements that make bookkeeping easier. Businesses with a more extensive fleet can employ TMS for better control over operation management.
Factoring Invoices
Here are the top four factors to consider when you’re choosing trucking accounting software for your company. Apart from its robust human resources (HR) functions and reporting functionality, it can manage the pay processes of both driver and nondriver staff—all at an affordable price. When you set up your owner-operator or carrier business, you have several options for structuring the business that will impact bookkeeping and tax filing. Setting up your business as a sole proprietorship is extremely simple and will help you avoid having to process payroll yourself but it’ll subject all of your net income to self-employment tax. A cash flow statement shows how much actual cash the company has on hand. This is an important statement for small businesses and entrepreneurs because it shows a company’s day-to-day financial health.
The accrual basis of accounting requires that you recognize revenues when you earn them and expenses when you incur them, regardless of when funds enter or leave your accounts. It takes more work, but it also documents your profitability more accurately. Accounting is one of the least exciting aspects of small business ownership for many owner-operators. However, you can’t afford to neglect it since your responsibilities can quickly become overwhelming if you fall behind.
Otherwise, check our guide to the best business credit cards for small businesses to find additional options. With ATBS’ bookkeeping and tax preparation services, you can streamline your back-office processes and invest in the future of your business, saving you both time and money. The best trucking accounting software should be able to manage and track dispatches, orders, fuel and mileage, driver settlements, and IFTA reporting.
