Any business trucking owner knows that trucking accounting and bookkeeping are vital to the success of the business, but it can be difficult to keep track of everything yourself. Bookkeeping for trucking companies can be complex, but it is essential for keeping track of expenses, revenues, and mileage. Many drivers must submit fuel tax reports and maintain records for Department of Transportation (DOT) compliance.
This helps separate personal and business expenses, making it easier to track your financials and simplify tax filing. However, some trucking companies and owner operators may find general accounting software sufficient if they have separate solutions for trucking-specific needs. Lastly, you want to look for a bookkeeper that will also calculate your tax estimates.
Best practices for trucking accounting
Finding the right accounting software for your trucking business can seem daunting but choosing the right one will save time and money in the long run. We must keep our personal finances and business finances completely separated. Blending personal and business expenses hinders accurate tracking of profitability.
Comparing your data to other owner-operators allows you to see the areas where your business is performing better than your peers, as well as the areas where you can improve. Automating the IFTA process can save time and enhance accuracy and compliance, allowing you to focus on more strategic tasks throughout your warehouse. One in 25 owner-operators faces an IRS tax audit annually, with state audits also possible. Pay the balance in full every month to avoid racking up additional business debt. Avoid missed payments and stay on top of the money going out of your bank account by switching to electronic billing.
When personal finances are included in business accounts, it becomes difficult to assess operating costs, create budgets, and develop effective strategies. While Oracle NetSuite may not be the best trucking accounting system, it does earn its status as some of the best accounting software which can be used by trucking businesses. Nothing will make your life easier than using a separate account for your trucking job.
ACV’s 2023 Analyst Day Showcases Latest Data & Technology Innovations
Track all of your debits using an accounting system that you regularly monitor. If you have performed all of these tasks thoroughly and successfully, your books should automatically be audit-proof. But just in case, you should review these steps and make sure that you have your records in order with physical records safely stored as well. You never know when you might experience a hard drive crash, lose your phone, or delete your data by accident. Now that you know what bookkeeping is, let’s explore how bookkeeping works when it is put into action.
Truck Financing Companies
At the end of each quarter, you must submit an IFTA report that lists the miles driven and the gallons purchased. We provide transportation accounting, bookkeeping, cash flow management, accounts payable & receivable, and tax services to a wide range of businesses in the industry. From logistics, maritime, and trucking businesses to large multi-state companies, we offer customized transportation accounting to fit your needs. We offer all our clients reliable financial advice and the friendly, personalized service they deserve including bookkeeping for truck drivers. Truckers’ bookkeeping allows you to record all operations of your business effectively. You’ll also have an easier time tracking and documenting your spending, as most accounting software can integrate with your bank account.
- The bookkeeper will then be able to use the receipts to prepare accurate monthly profit and loss statements for your business.
- Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
- Accounting software makes bookkeeping easier by letting you scan receipts or enter data in one place so that it’s readily available when needed.
- This simplifies transactions for trucking companies dealing with numerous clients or vendors.
- MyaccountsConsultant offers many financial services that can make your transportation business more profitable and scalable.
- These reports help you make informed business decisions and understand where your money’s going.
What is Trucking Accounting Software?
Nowadays, there are plenty of apps that you can use to tag and catalog your receipts. These reports help you make informed business decisions and understand where your money’s going. Implementing effective bookkeeping practices allows your company to run smoothly, letting you focus on other tasks and issues. Every successful company needs a long-term financial plan and goal that acts as a guide for their business practices.
- Software designed for accounting will have accounting features to provide detailed reports, earnings, loss statements, and more.
- Owner operators and small fleet owners may have a hard time justifying the higher cost of a full TMS if they are unlikely to use the extra features.
- If you’re a truck driver or trucking company owner, you know that bookkeeping is a vital part of keeping your business running smoothly.
- At Score Factor, we specialize in providing bookkeeping solutions tailored to truck drivers.
- If you’re an owner/operator of a trucking company, chances are you have very little free time.
Whether you keep copies of your receipts in a file cabinet or you store your receipts in an envelope that you keep in your truck, always make sure you date your records. On top of this, it’s wise to have digital copies of everything as well because physical copies of receipts can sustain damage that makes them illegible. Just like saving your receipts, keeping records of your log books is important, too. 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.
While trucking accounting software typically refers to a standalone product, some trucking accounting solutions are just one component of a comprehensive trucking management system. Trucking management software typically automates tasks like dispatching, fleet management, and maintenance scheduling. Failing to track every expense inevitably leads to missed deductions and inaccurate financial reporting—risks you don’t want to take. On your taxes, you want the biggest deductions possible, which means you want to be diligent about maintaining receipts for proof of business purchases. For this reason, failing to track receipts can affect your bottom line and is simply poor truck driver bookkeeping.
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings. Our mission is to break apart what CRM is and means.Here we discuss anything that helps create more meaningful lasting work relationships. The FreshBooks mobile app is a lovely little tool, great look and feel and ease of use.
This supports smarter tax planning and helps you understand the real value of your business over time. As a self-employed driver or fleet owner, you’re responsible for paying estimated taxes. We help you calculate what you owe each quarter, avoiding penalties and last-minute surprises. Turn your receipts into data and deductibles with our expense reports that include IRS-accepted receipt images. You can also read up on accounting blogs to familiarize yourself with the process.
Rigbooks supports IFTA compliance by tracking mileage per jurisdiction and providing detailed information for tax reporting. With truckers filing taxes quarterly, it’s helpful to make sure your books are tidy and updated at all times. Doing so will help you save time and money, making it a solid baseline for accounting as a truck driver. When you’re focused on routes, deliveries, and DOT compliance, it’s easy to let paperwork pile up. But sloppy or incomplete bookkeeping can quickly lead to missed deductions, IRS penalties, and cash flow problems. Bookkeeping isn’t just for tax season—it’s what bookkeeping for truck drivers keeps your trucking business running smoothly year-round.
Trucking businesses have various software program options such as accounting software and trucking management software, at their disposal to assist with day-to-day tasks. Investing in the right software program with different important features will greatly ease burdens and helps avoid waisting precious resources. Generally speaking, bookkeeping for trucking companies involves maintaining the general ledger with day-to-day transactions within the business. The process is routine and administrative, which does not require critical thinking. Since little training is required for small businesses to perform this function successfully, many truck drivers complete this alone. Best practices for truckers include keeping digital copies of bills and receipts, learning about tax deductions, using a dedicated business bank account, and updating books daily.
The “I’ll do it later” mentality will lead to bigger problems when “later” comes and can result in financial errors that take longer to correct. When filing business taxes, it is important to ensure accuracy when claiming expenses. Including personal expenses could be problematic; there’s potential legal risks and it could trigger red flags in an audit. Freight broker features include freight billing, truck driver management, vehicle management, and other administration.
