Trucking Accounting: Essential Tips and Tools

These accounts come with credit cards that interface directly with the bank and function best for business-related transactions. It’s essential that your accounting software integrates with other business tools such as your dispatch system. By doing so, you can streamline your business process and save time while reducing the risk of manual errors. Integration can also help you to manage your cash flow more effectively and make more informed decisions about your business.

Accounting is more sophisticated and analytical than bookkeeping, and there’s often more at stake. For example, accounting errors could cause you to miss out on valuable financing or get you in trouble with the Internal Revenue Service (IRS). Apply for financing, track your business cashflow, and more with a single lendio account. Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. To learn more, fill out our contact form to speak with an ATBS Enrollment Specialist, or view our services and pricing.

  1. They impact your tax return significantly, so consider consulting an accountant before choosing one.
  2. So their accountants and bookkeepers work tirelessly to offer high-quality services to trucking companies nationwide.
  3. So you can lessen your load, we’ve compiled a list of the best trucking bookkeeping services to make your life a little easier.
  4. The bookkeeper should be able to archive all of your important paperwork in their secure database.
  5. However, for most people, it remains a complicated endeavor, and in such a scenario, there are other options business owners can take to ensure they do not make mistakes.
  6. For example, it’s usually best for a driver to keep track of their miles, fuel purchases, and meal expenses while on the road.

Technology has grown rapidly and drastically impacted different aspects of society by streamlining various complex processes. Regarding the trucking industry, numerous software currently exists to help truck drivers and owner-operators in different administrative functions, including bookkeeping. It’s crucial to have adequate insurance coverage and to regularly set aside a portion of profits to build up your business’s cash reserves. This can help you cover unexpected expenses and emergencies without affecting your business’s financial health. For example, transportation management software, also known simply as trucking software, is a must-have for owner-operators.

Best Trucking Accounting Software for 2024

No matter your fleet size or how long you have been in business, it is crucial to understand basic accounting terms and financial documents. Accounting explains your company’s financial history, health and overall performance. Without a good understanding of this information, you won’t know if you are succeeding or failing. That limits your ability to make informed decisions, operate effectively and position your company for future growth. The first thing you should look for is a bookkeeping service that will scan and archive all of your business receipts and important files.

All in all, updated financial records mitigate the risks of errors and missed deductions. Across various industries, accounting remains one of the least exciting aspects, which holds even in the trucking sector. That notwithstanding, it’s one aspect business owners can’t afford to ignore, as operations can rapidly fall behind with accounting behaviors such as poor bookkeeping.

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. Also, having a bookkeeper who prepares taxes makes it easier to file your tax return. If your bookkeeper and tax preparer work together, they can find all the legal deductions you are entitled to, so you don’t pay more in taxes than you have to. This option is a lot more efficient and more accurate than giving your documents to a tax preparer who doesn’t know your business. Bookkeeping incorporates the processes involved in maintaining the financial records of a trucking business’s daily transactions using a general ledger.

How Trucking Bookkeeping Is Unique

As a trucking business owner, you should keep records of all your expenses and the documents that support them, such as receipts and account statements. For example, that includes data from your ELD, invoices, bills of lading, payroll statements, and tax payment receipts. An accounting solution is also essential for most small businesses, including trucking companies. If you link your trucking accounting software to your business bank account and credit card, it should track your every invoice and expense automatically. Using a business credit card can help simplify your bookkeeping, and most accounting systems sync with your bank and credit card accounts.

You’ll incur penalties and interest if you don’t meet your federal and state liabilities. Looking for a bookkeeper that does tax reconciliation will also be beneficial trucking bookkeeping for your trucking business. A bookkeeper that includes this service will analyze and categorize your revenue and expenses rather than just blindly inputting the data.

Implement a System for Invoicing and Payments

Bookkeeping services not only make it easier to gain a bigger picture of your financial condition but pinpoint spots where your business can cut expenses or improve revenues. For large transportation companies, a CPA for truckers may be able to offer more services. Lastly, you want to look for a bookkeeper that will also calculate your tax estimates. As an owner-operator, you have to pay quarterly tax estimates based on your profit. If your bookkeeper also calculates your tax estimates, they are able to use your P&L statements throughout the year to let you accurately know how much your estimated tax payments should be. Many preparers simply use last year’s tax return to calculate your current year’s tax estimates.

It equals $100 plus $22 for every 1,000 pounds over 55,000 pounds up to $550 and 75,000 pounds. Another decision every small business owner has to make is what type of legal entity they want to use. Sole proprietors are the default structure, so owner-operators who start doing business without filing any paperwork will fall into that category.

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. There are many benefits that come with using a bookkeeping service for your trucking business. In this article, we will discuss important things to consider when you search for one. I am the owner and head publisher for Trucker Daily and a freight brokerage Total Connection Logistics. It is my mission with Trucker daily to equip truck drivers, with the latest in industry updates, news, and helpful tips to help further your trucking career and life.

It’s also essential to keep proper documentation on hand in case you’re ever audited by the IRS. If you’re just starting your business, you’ll have to factor in the costs of the trucks themselves and the insurance to cover them. You’ll also likely need a general business license, sales tax license, and possibly a license to conduct business across state lines.

Most truckers use trucking bookkeeping services to handle their bookkeeping needs. Bookkeepers help trucking companies keep track of financial statements and give them a better idea of how their businesses are performing. Trucking bookkeeping services have several benefits, such as receipt scanning, tax calculation, money management, document storage, and invoicing. While these platforms might 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.

This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. Streamlining processes to send invoices sooner can help improve your cash flow position. With ATBS, a dedicated consultant will walk you through the entire process of preparing and filing your taxes so you can be confident everything is accurate. There are plenty of truckers who put off these critical tasks until the end of the month.

Kevin’s Trucking Company: Cash Flow Statement, January 2020

Keeping your fleet well-maintained is also essential, and this includes getting regular oil changes and other standard maintenance on time. The best way to save on gas prices is to download an app like GasBuddy, which will help you identify the best-priced gas in your vicinity. From records of your profits and losses, to tax estimates, profit planning, and other budgeting resources, our bookkeepers will scan and document your critical business information. Taking notes also helps track all cash inflows and outflows, making it easier to chase down invoices.

Before you start, we’re here to make sure you’re up to date on some of the significant changes that have happened over the past year that could affect your tax return. Click below for our list of a few things that have changed and a few things that are carrying over from the previous tax season. Nick Gallo is a Certified Public Accountant and content marketer for the financial industry.