truck driver bookkeeping

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 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. By updating your books daily, you will have a better idea of how your business is doing and be able to manage your cash flow more easily. Plus, if you do lose a receipt, you will still have the record in your files.

truck driver bookkeeping

It’s always best to consult with a tax professional or a bookkeeper experienced in trucking industries to ensure you’re maximizing your deductions. We’ll keep you regularly updated with your trucking business’s bookkeeping. Yes, trucking bookkeeping can be incredibly affordable, especially when you consider the potential tax deductions you could find. Taking notes also helps track all cash inflows and outflows, making it easier to chase down invoices.

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For example, that includes data from your ELD, invoices, bills of lading, payroll statements, and tax payment receipts. You must keep all records used to prepare your tax return for three years from the date you filed the return. Q7 provides a full suite of accounting tools for trucking businesses, including payroll, general ledger, accounts receivable, and accounts payable.

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. Determining this information is advantageous regarding effective decision-making. On the one hand, owner-operators can put a valid price on their services to ensure profitability.

What are the best practices when it comes to bookkeeping for truckers?

If you’re also using truck management software, you can usually link the two and automate your IFTA responsibilities completely. To stay in compliance, file Form 2290 with the IRS and pay any applicable taxes by the last day of the month after the month you first used the vehicle on public highways. For example, if you place your truck into service in July, the due date is August 31. In addition to keeping records of your expenses, you should have documents that prove their validity, such as receipts, trip logs, and account statements. All businesses need to keep track of their expenses, but it’s more challenging in some industries than others.

  • That way, you won’t have any mix-ups between personal and business expenses.
  • It’s also essential to keep proper documentation on hand in case you’re ever audited by the IRS.
  • When it comes to taxes, the Trucker CFO Team has the experience you need to help you reduce your tax liability as a trucking entrepreneur and business owner.
  • Your fixed costs per mile, such as insurance, should drastically fall as the number of miles driven increases.
  • As a result, it’s important to get expert advice before starting a business trucking.

You need a lawyer, you need an accountant, you need a carrier, you need a banker and a loan officer. There’s an organization that you build around yourself that helps you run your business because they’re experts at various portions of it. One of the most important relationships that we have in trucking is with Colton Lawrence and his Trucker CFO Team. They have the experience and expertise within the trucking industry that makes a difference for small businesses in trucking.

Bookkeeping for Truck Drivers: 6 Smart Tips

That’s why bookkeeping services are so important for the trucking industry. In addition to bookkeeping, truck drivers also need to keep track of their hours of service and log their driving activity. Any trucking business, no matter what size, needs to keep accurate records to ensure compliance with government regulations and maintain a healthy bottom line.

  • It equals $100 plus $22 for every 1,000 pounds over 55,000 pounds up to $550 and 75,000 pounds.
  • For example, you can categorise your fuel and food as different categories, being able to see where the most expenses come from.
  • At Bench Accounting, we understand that truck drivers and their business operations are always on the move and their bookkeeping needs are unique.
  • AXON’s payroll system handles various compensation models, including mileage-based pay for drivers, hourly wages for office staff, and salary-based compensation for management.
  • Executing proper transportation accounting procedures requires as much training and expertise as the transporting itself.
  • By updating your books daily, you will have a better idea of how your business is doing and be able to manage your cash flow more easily.

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. By saving every receipt, you will create a saving grace for yourself when it comes time to do your taxes.

We’re excited to announce that a new app and client portal experience is now available!

As a sole proprietor, you and your trucking business are a single entity. Here’s what you need to know about trucking accounting, including how to truckers bookkeeping set up an effective system and some common mistakes to avoid. Trucking management software (TMS) can help you keep track of everything easily.

  • This integration ensures that trucking businesses can maintain financial records without manual data entry.
  • Many bookkeeping services online help with tax preparation for truck drivers.
  • Additionally, it is important to maintain accurate records of your cash flow.
  • Bookkeepers help trucking companies keep track of financial statements and give them a better idea of how their businesses are performing.
  • You must submit an IFTA report detailing the miles traveled and gallons purchased at the end of each quarter.