Many bookkeepers hone and develop their expertise over time while others opt to complete seminars, read books or take online classes. In the competitive realm of trucking, where precision and efficiency are key, having a specialized bookkeeper is essential. They not only ensure smooth financial operations but also position the company for sustained growth and profitability. As you hop off your rig after a long, cross-country drive, bookkeeping is likely the last thing on your mind. It’s tedious work, and even if you employ a bookkeeper, you still need to hold onto and organize your documents, cash receipt journals, and receipts book on a regular basis.
Creating a specialized account for business transactions also makes bookkeeping easier in running a trucking business. These accounts come with credit cards that interface directly with the bank and function best for business-related transactions. Trucking bookkeeping is crucial for managing cash flow, calculating profits, and fulfilling tax obligations. It also helps trucking businesses make informed business decisions by providing insights into key financial metrics, such as operating expenses, revenue per mile, and profit margins.
Navigating Trucking Taxes
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- Unfortunately, trucking is a business that requires you to be particularly diligent in your record keeping.
- As your business grows and you begin making higher profits, hiring staff and handling more transactions, however, it may make sense to outsource the details of bookkeeping to someone else.
- By updating your books regularly, you can prevent overdrafts, underreporting and countless other easily rectifiable financial mistakes.
- At the end of each quarter, you must submit an IFTA report that lists the miles driven and the gallons purchased.
- Waiting to invoice can result in payment delays and potential disputes over billing issues, which could strain the relationship with your customers and potentially result in loss of business.
- It also integrates seamlessly with TruckingOffice, a trucking management system that helps you manage your dispatches and business expenses, as well as prepare your IFTA reports.
Next, set aside a dedicated time either weekly or biweekly to review your bookkeeping, reconcile transactions and complete necessary data entry. Finally, you’ll want to decide how all receipts and documents will be stored. You can either keep hard copies or opt for electronic files by scanning paperwork. We recommend updating your books on a daily basis so you can make sure all the details of your transactions are fresh in your mind. The accounting software recommended in this article comes with mobile apps, so even if you’re not at your desk, you have no excuse!
How to choose accounting software for your trucking company
Now that you know what bookkeeping is, let’s explore how bookkeeping works when it is put into action.
You can learn more about our recommendation through our guide on the top trucking accounting software. Although many of these tasks can be performed manually, you can save yourself a lot of time and avoid stress by using trucking management software to help with your bookkeeping needs. This is one of the most well-known accounting apps for trucking management software for a reason. It’s a simple-to-use, all-in-one accounting platform what is operating cash flow that includes many useful features such as income and expense tracking, mileage tracking, and invoicing. Also, we believe that it has the simplest user interface (UI) among all the software listed here, making it a great option for trucking owners with no accounting background. If your trucking company doesn’t require accounting features and solely focuses on trucking management, then Rigbooks is a cost-effective solution.
Find the Best Accounting Software
You may dread them, you may forget to do them, but they’re necessary and have to be done eventually. Access all these features from your computer or mobile device, so you’re ready for anything on and off the road. Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page. Trucking companies require various types of insurance coverage, from liability insurance to cargo insurance.
Avoid missed payments and stay on top of the money going out of your bank account by switching to electronic billing. That way, all of your bills can be accessed through any computer or mobile device, no matter where you are in the world. For any bills that don’t have an option to go digital, you can use Shoeboxed to scan your paper copies and save them to the cloud. If you’re experienced in bookkeeping and are managing a small or medium-sized trucking company, consider Q7.
Is it better to hire a bookkeeper or accountant, rather than risk doing your accounts wrong?
If you’re looking for bookkeeping software specifically tailored to the needs of trucking companies, here are some other options to consider. When you work with Bench, you get a dedicated bookkeeper who will get to know your business. Each month, your bookkeeper will organize your business transactions and prepare financial statements and other financial reports. You’ll also have access to an intuitive app that helps you understand your financial position and cash flow at a glance and monitor trends in real time. When you set up your owner-operator or carrier business, you have several options for structuring the business that will impact bookkeeping and tax filing.
Bookkeeping For Trucking Company: A Guide To Financial Clarity And Success 2023
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 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 significant risk, you’re often better off taking the time to form a limited liability company (LLC) or a corporation. Here’s what you need to know about trucking accounting, including how to set up an effective system and some common mistakes to avoid.
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 will generate reports and draw valuable insights based on your data. 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. As a QuickBooks ProAdvisor, Mark has extensive knowledge of QuickBooks products, allowing him to create valuable content that educates businesses on maximizing the benefits of the software.