You can keep track by recording the reason for the expense, the date and the amount spent. Being able to categorise your expenses, means that you can see what has been spent on the type of expense each month. For example, you can categorise your fuel and food as different categories, being able to see where the most expenses come from. Accracy is not a public accounting firm and does not provide services that would require a license to practice public accountancy. Beyond mere numbers, our reporting services are a gateway to actionable insights. We go beyond presenting data; we interpret, analyze, and deliver reports that serve as strategic roadmaps for your business.
- For example, it’s likely to need an MOT, VED (vehicle excise duty), regular servicing, and possibly repairs.
- 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.
- 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.
- There is one major factor you’ll want to consider when deciding how you want to manage your bookkeeping—time.
- Deposit any work-related checks you receive into this account, then pay yourself from these funds, and use the account to pay all expenses.
Because separating your business finances also helps with building business credit, you could choose to apply for a credit card and establish utility accounts under your company’s name. Once an independent truck driver has the proper accounting/bookkeeping system in place, they need to make sure that their business books are actually updated on a continual basis. If you fall behind on the books, it can be difficult to dig out of the hole. In order to use the above template we need to add all the above possible sources of income, expenses, assets and liabilities as a truck driver (as shown below). It may be best for an important part of our business, but it’s not the only component of computer software we need.
Having all of this information helps you provide an accurate representation of your business when it comes to tax reporting. Just like QuickBooks Online, Zoho Books isn’t custom-tailored for trucking businesses. However, it has a powerful mobile accounting app that can help independent truckers in many ways.
It may be tedious to record all of your transactions, but come tax season, you’ll thank yourself! By keeping track of every penny you spend and earn, you may be able to find new deductibles and save your business even more money. Keeping up with your IFTA data is one of the most important parts of running a trucking business. With the right trucking software program in place, you can organize your fleet’s miles or fuel gallons by state. The miles are automatically calculated using the tools incorporated in the system.
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. Unfortunately, trucking is a business that requires you to be particularly diligent in your record keeping. The cash basis involves recognizing revenues when you receive payments and deducting expenses when you pay them. Because it’s easy to implement, many small businesses favor this method.
Understanding bookkeeping helps to give you a clear picture of your business’ performance and be prepared for when tax time rolls around. Bench Accounting is aware of these challenges and can provide specialized support for truck drivers. Our team of professional bookkeepers can help track and categorize expenses, manage your books, ensure accurate tax filings, and provide invaluable financial reports.
Start with a notebook, an app, a pen and some envelopes to begin keeping your books clean and tidy. Though plenty of accounting software fits the bill, we would recommend starting with TruckingOffice. That’s the main reason we put our heads together and developed our Trucking Office software for owner-operators. We are truckers ourselves, and we know what kind of features owner-operators need to run their trucking company with convenience and ease.
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 https://adprun.net/ employees on time. Rigbooks aced the pricing category since it’s the most affordable specialized trucking software on our list. It also earned a perfect mark for tracking features and excelled in ease of use due to its simple user interface that is easy to navigate.
It’ll also help you make informed decisions and position your company well for future growth. Therefore, you should follow these trucking bookkeeping tips to increase profitability and save valuable time. Invoicing your customers promptly is a key factor in maintaining cash flow for your business because it ensures that you receive payment for your services as soon as possible.
Additionally, we deducted some points for pricing due to the combined cost of the two software programs. In addition, ignoring your accounting for more than a couple of months means you’ll likely miss one or more tax due dates. If you fail to make estimated tax payments, submit your IFTA reports, or file Form 2290 on time, you’ll face penalties and interest. For example, transportation management software, also known simply as trucking software, is a must-have for owner-operators.
Do you need an all-in-one platform that includes complete bookkeeping and trucking management solutions?
From routing to maintenance records to IFTA reporting and invoicing, our easy-to-use trucking software gives you everything you need, when you need it. One significant software prevalent in the logistics industry for bookkeeping and accounting processes is the transportation management system (TMS). This software is a logistics platform that employs technology in managing a trucking business.
Are you undercharging for your bookkeeping services?
However, a free solution might not be enough if you have complex trucking management needs. This is where we recommend premium software like Q7 or even an integration between QuickBooks Online and RAMA Logistics Software. While QuickBooks Online handles all your accounting processes, RLS helps you accomplish trucking-related tasks.
Bookkeeping for Truck Drivers: 6 Smart Tips
It’s also a great way to view duplicate transactions that need to be removed or credited. There are definitely worse things than sorting through your personal and business transactions because they’re on the same account. However, there’s nothing more time-consuming than having to perform unnecessary work simply because you are overlooking a critical process.
They come integrated with accounting platforms that simplify bookkeeping and automate complex and lengthy administrative processes. As such, truck drivers and owner-operators are capable of handling most of their bookkeeping without professional help. A prevalent method truck owner-operators employ for bookkeeping is tracking all costs, including fuel purchases and meal expenses, and keeping track of distance traveled. Bookkeeping is an important part of running your business as an owner-operator truck driver. Make sure you research any and all deductibles your owner-operator trucking business could be eligible for.
That’s why it’s imperative that you keep a record of your expenses for years to come. Spreadsheets are convenient, but they still take quite a bit of time to build and maintain. They also don’t come with any of the fancy bells and whistles that bookkeeping apps and software do. Many bookkeeping apps and software bookkeeping for truck drivers will generate reports and draw valuable insights based on your data. Additionally, Zoho Books has no trucking-specific features, which is completely understandable. What’s more, we didn’t find any integrations that could solve this weakness, unlike QuickBooks which integrates with trucking software like RLS.
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