The Ultimate Guide to Truckers Bookkeeping for Your Trucking Company

truckers bookkeeping

However, any income remaining after payroll and expenses can be withdrawn with no payroll tax. Check expenses to your bank accounts to make sure they are legitimate expenses, especially if you’re not the only one with access to the account. With an accrual system, you recognize revenue when it’s earned (before it’s paid) and bills when received (before they are paid). Falsification of business records carries a maximum sentence of four years in prison and a $5,000 fine for each charge, but Merchan has broad leeway when determining the punishment.

  • The receipts and records you keep are often in areas of your business — income tax reporting and minimization, warranty issues …
  • We have vast experience with helping trucking companies manage their business finances that ensures that they are setup in a way to achieve success.
  • Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you.
  • With the trucking software program from you can keep up with invoices that are coming due and receive alerts if any payments are past due.
  • While they’re theoretically distinct, the line between them is somewhat blurred.


See our top-recommended fuel cards and find the one best suited for your trucking business. Otherwise, check our guide to the best business credit cards for small businesses to find additional options. No matter your fleet size or business needs, there is a trucking bookkeeping service to help you manage your transportation company. Business services can help significantly with the organization and reporting of your owner-operator income, expenses, profit and loss reports, and taxes. But if you’re an owner-operator who wants to manage the business yourself, you need a surefire system to keep recordkeeping as simple as possible.

  • You must keep all records used to prepare your tax return for three years from the date you filed the return.
  • Automating your accounts receivable by using invoicing software will help you to create customized invoices quickly and get paid faster.
  • Many preparers simply use last year’s tax return to calculate your current year’s tax estimates.
  • Our team does not takethat responsibility lightly.This is why we start by gettingto know you personally.
  • While these platforms might not be loaded with cutting-edge features, they incorporate crucial elements that make bookkeeping easier.
  • Also, having a bookkeeper who prepares taxes makes it easier to file your tax return.

Save Your Records

They can be digitized in the same way that receipts can, whether that be in a TMS or a digital logbook that declutters your office. There are definitely worse things than sorting through your personal and business transactions because they’re on the same account. However, there’s nothing more time-consuming than having to perform unnecessary work simply because you are overlooking a critical process. By saving every receipt, you will create a saving grace for yourself when it comes time to do your taxes. In the unfortunate case that you end up being audited by the IRS, you’ll also have a paper trail to fall back on, too. Though bookkeeping is a catch-all term for a range of different processes, here are 11 basic bookkeeping tips for truckers.

truckers bookkeeping

Benefits of Trucking Bookkeeping Services

Unfortunately, trucking is a business that requires you to be particularly diligent in your record keeping. As a result, you probably shouldn’t try to manage your trucking business’s truckers bookkeeping accounting function without help. It may be worth handling some lower-level aspects, but you’re better off outsourcing the more complex and time-consuming parts.

Remember, it can be surprisingly hard to catch up on trucking records once you’ve fallen behind. It becomes even worse if you also neglect to separate your business and personal transactions. 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 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.

Tax Reconciliation

truckers bookkeeping

However, you can’t afford to neglect it since your responsibilities can quickly become overwhelming if you fall behind. External DSO is the time it takes from your customer receiving the invoice to when it is paid whereas internal DSO is the time it takes for the invoice to be sent after the shipment was completed. Streamlining processes to send invoices sooner can help improve your cash flow position. Your variable costs per mile, such as fuel, should stay pretty constant regardless of the number of miles driven. Your fixed costs per mile, such as insurance, should drastically fall as the number of miles driven increases. You may wish to calculate cost-per-mile separately for each category, for example—drivers, equipment, states, or customers—to spot trends or areas for improvement.

Here are six things truckers need to know heading into tax season – CDLLife

Here are six things truckers need to know heading into tax season.

Posted: Tue, 13 Feb 2024 08:00:00 GMT [source]

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It fosters the organization and analysis of all financial statements to give you a clue about the business performance. There are numerous means and benefits of engaging in bookkeeping as a trucking business owner, and we discuss all these in detail. FlatWorld can help your trucking company achieve seamless back-end operations, specializing in accounting services for trucking and logistics clients. With around-the-clock service, they’re available to help meet your bookkeeping needs as they arise.

Bookkeeping Services for Trucking Companies

If you’re trying to decide whether to buy fuel in one state compared to another, then you’ll need to subtract the state fuel tax from the retail price you pay. Yes, trucking bookkeeping can be incredibly affordable, especially when you consider the potential tax deductions you could find. Trucking management software (TMS) can help you keep track of everything easily. You can handle most tasks in the comfort of your cab using a smartphone, tablet, or laptop.

The next thing you should look for in a bookkeeping service is a secure online portal where you can view your digitized documents and review your profit and loss (P&L) statements at any time. With a secure online portal, you don’t have to go into an office or call your bookkeeper to access your information. This is especially convenient for truck drivers who are on the road and aren’t always able to go in and talk to their local accountant.

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