Working with the right payroll provider can be the key to saving time and avoiding unnecessary paperwork. It’s also important to keep detailed information on mileage and trips, no matter the size of your business. The ideal accounting solution will provide all of this information and offer trucking management tools, such as fleet maintenance tracking. For example, if you utilize a bookkeeper who offers tax reconciliation services as well as industry benchmarking data, they can help you spot expense 5 tips on how to hire employees with no money documentation you may have forgotten to send. If the average owner-operator is spending 30% of their revenue on fuel, and you only show 10% of revenue spent on fuel, your bookkeeper should be able to alert you to the discrepancy.
What trucker bookkeeping service should I hire?
Because the data will be entered automatically whenever a payment is made, it’ll help save time and eliminate potential errors. Having a business credit card will also streamline your bookkeeping because you can often separate expenses into categories, such as gas, food, and maintenance. It’s essential to keep track of purchases throughout the year in preparation for tax season.
- Because working in the trucking industry involves taking on significant risk, you’re often better off taking the time to form a limited liability company (LLC) or a corporation.
- FlatWorld can help your trucking company achieve seamless back-end operations, specializing in accounting services for trucking and logistics clients.
- Executing proper transportation accounting procedures requires as much training and expertise as the transporting itself.
- Don’t miss a single expense by adding one of 70 popular apps that integrate with FreshBooks.
Ensure that you pay your balance in full every month to avoid high interest charges. Logbooks are your best proof of entitlement to per diem expenses, which are primarily comprised of meal costs. Have them keep notes of what specific payments are for, especially if they aren’t recording them immediately as this will help you deduct as many legitimate costs as possible. Your variable costs per mile, such as fuel, should top paid executives for 2018 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.
Choosing an Accounting Software for Your Trucking Business
Fuel cards can automatically track, organize, and display the information you need to fill out your IFTA expense reports. If you’re also using truck management software, you can usually link the two and automate your IFTA responsibilities completely. One of the primary problems with managing your small business accounting is the sheer amount of time cash book definition and energy it takes.
FreshBooks Integrates with All Your Favorite Apps
Running a trucking company alone is enough work to keep you busy, and trying to do both is a lot to handle at once. As a result, you probably shouldn’t try to manage your trucking business’s 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. In broad terms, bookkeeping involves maintaining financial records of your trucking business’s day-to-day transactions in a general ledger.
All business owners must make quarterly estimated tax payments to cover their income and self-employment taxes, and truck drivers are no exception. You’ll incur penalties and interest if you don’t meet your federal and state liabilities. Understanding financial management involves some familiarity with financial statements. The three most common documents that companies use to gauge their financial health and performance are the balance sheet, the income statement and the cash flow statement. Invoicing your customers promptly is a key factor in maintaining cash flow for your business because it ensures that you receive payment for your services as soon as possible. This will provide you with the necessary funds to pay for expenses such as fuel, maintenance, and wages.
Integrate FreshBooks with Your Other Apps
While they’re theoretically distinct, the line between them is somewhat blurred. The bookkeeper will then be able to use the receipts to prepare accurate monthly profit and loss statements for your business. If you ever need any of these files back, a good bookkeeper will be able to easily find and send back electronic copies of the receipts or files that you need at any time. FreshBooks also makes it possible to manage your business online quickly and securely.
