Apart from the daily tasks of running a trucking business, the back-office duties need your attention just as much. Truckers’ bookkeeping allows you to record all operations of your business effectively. 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. Determining this information is advantageous regarding effective decision-making.
Outsourced accounting lets you select only the specialized accounting services you need, keeping your costs down. 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 truckers bookkeeping service completely. 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. The cash basis involves recognizing revenues when you receive payments and deducting expenses when you pay them.
Small Business No Tax Tracking Expanded Ledger
For example, if you place your truck into service in July, the due date is August 31. 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. Join over 1 million businesses scanning receipts, creating expense reports, and reclaiming multiple hours every week—with Shoeboxed.
However, there’s nothing more time-consuming than having to perform unnecessary work simply because you are overlooking a critical process. Though bookkeeping is a catch-all term for a range of different processes, here are 11 basic bookkeeping tips for truckers. You can sign up for a 30-day free trial without providing your credit card details. Go to our detailed review of RAMA Logistics Software or visit RAMA Logistics Software for more information. Are you looking for ways to expand your business or cover operating expenses? One of the best ways to streamline your IFTA reporting is by using a dedicated fuel card.
What Is Bookkeeping for Trucking Owner Operators
Because it’s easy to implement, many small businesses favor this method. It’s often even more difficult for truck drivers, whose gas and food expenses could easily be personal costs if they occurred outside of a trucking trip. The first thing every business owner should do to simplify their accounting is to separate their business activities from their personal ones. The easiest way is to open up a new checking account and credit card and reserve them for business use only. One of your most powerful trucking bookkeeping resources comes in the form of a tiny slip of paper—receipts!
- You must keep all records used to prepare your tax return for three years from the date you filed the return.
- The root of the problem with using QuickBooks for trucking is that it’s one-size-fits-all accounting software.
- Accountants use financial information generated through the bookkeeping step to develop financial statements, perform cash flow analysis, and use the financial data to file a tax return.
- In addition to keeping records of your expenses, you should have documents that prove their validity, such as receipts, trip logs, and account statements.
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It is important to price your services right so that you can cover these expenses and make a profit. You can also start with a small fleet and add to it as your company grows. This will free up your cash flow and let you scale as your business attracts new customers. Though plenty of accounting software fits the bill, we would recommend starting with TruckingOffice.