Bookkeeping for Truck Drivers

It’s also essential to keep proper documentation on hand in case you’re ever audited by the IRS. IFTA was put into place to redistribute the tax to the states where the fuel is being used, not where it’s purchased. 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. With an S-corp, you’ll have to run payroll to pay yourself just as you pay any employee. However, any income remaining after payroll and expenses can be withdrawn with no payroll tax. You can now customize your FreshBooks experience with a range of business-friendly apps.

For example, most small business owners can only take 50% of meal expenses, but truckers are allowed to take 80% of either their actual costs or per diem allowances. The IFTA is a way to redistribute the fuel taxes truck drivers pay in the lower 48 states and the 10 Canadian provinces. It ensures your funds go to the areas where you used your fuel instead of the ones where you purchased it.

Benefits of Trucking Bookkeeping Services

1. There are plenty of truckers who put off these critical tasks until the end of the month.
2. Your fixed costs per mile, such as insurance, should drastically fall as the number of miles driven increases.
3. An accounting solution is also essential for most small businesses, including trucking companies.
4. A company can show a profit on its income statement, yet still go out of business because of a temporary negative cash flow.
5. Truckers must choose between the two fundamental methods of accounting, the cash and accrual bases.
6. In this article, we will discuss important things to consider when you search for one.

Executing proper transportation accounting procedures requires as much training and expertise as the transporting itself. While there’s no substitute for experience, here are some common pitfalls you should know to avoid. 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. Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you.

For example, if you place your truck into service in July, the due date is August 31. 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. Because working in the trucking industry involves taking on stella and dot stylist review significant risk, you’re often better off taking the time to form a limited liability company (LLC) or a corporation.

Kevin’s Trucking Company: Income Statement 2019

If you fail to make estimated tax payments, submit your IFTA reports, or file Form 2290 on certificate of deposit accounting time, you’ll face penalties and interest. One of the most common mistakes small business owners make is putting their accounting responsibilities on the backburner for too long. 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.

Connect With Industry Leading AppsTo Level Up Your Accounting

See exactly how your trucking company is performing with profit and loss, accounts aging and expense reports. With the trucking software program from TruckingOffice.com you can keep up with invoices that are coming due and receive alerts if any payments are past due. This helps you improve your trucking company’s cash flow so that you will always be able to pay your drivers and other employees on time. At PorteBrown Accountants and Advisors, they understand that transportation companies are the lifeblood of commerce and the economy. So their accountants and bookkeepers work tirelessly to offer high-quality services to trucking companies nationwide. PorteBrown also draws on 75 years of industry experience and state-of-the-art accounting technology to ensure their accounting services’ accuracy.

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. Their services are also scalable due to their partnerships with leading Fortune 1000 companies. This is an important statement for small businesses and entrepreneurs because it shows a company’s day-to-day financial health. While the income statement shows what is a chart of accounts a small business bookkeeping guide how your company performed in the past, the cash flow statement shows how cash is being generated or used. A company can show a profit on its income statement, yet still go out of business because of a temporary negative cash flow.