Remote Books Online can help you monitor these costs in real-time, allowing you to make informed decisions about route optimization and vehicle maintenance scheduling to reduce expenses. If you’d like to see if Bench is the right fit for your trucking company, try us for free. We’ll do one month of bookkeeping in one business day and prepare a set of financial statements for you to keep. If you’re looking for bookkeeping gross vs. net income software specifically tailored to the needs of trucking companies, here are some other options to consider. Without this level of support, it’s common for trucking businesses to incur hefty fines for failure to comply with laws and regulations. According to the National Association of Small Trucking Companies (NASTC), only 15 per cent of newly formed trucking companies make it to their second year of operation.
Provide a monthly record to your business services provider or tax accountant and any other receipts. Your logbook and/or electronic log records are your best proof of entitlement to per diem expenses (primarily composed of meal costs). If you rely solely on your electronic logging device (ELD) for bookkeeping for truck drivers, make sure you can save and access your history. Using a trucking management software that is linked to your ELD streamlines your IFTA and IRP prep.
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. Here is an example of a very straightforward recordkeeping system for an owner-operator. Thetruckersbookkeeper.com is an authorized IRS e-file provider.The Trucker’s Bookkeeper is owned and operated in Shreveport, LA and Fort Worth, TX. Entrepreneurship isn’t for everyone, but anyone can become a successful entrepreneur.
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If not, you will be happy you took the time to keep your records in order. One out of every 25 owner-operators gets audited by the IRS for taxes each year. You want to avoid that happening to you, but you want assurances that you’ve done everything right if it does. As we advance this agenda at home, the Administration will work with allies and partners abroad on a strong international framework to govern the development and use of AI.
- Don’t hesitate become The Trucker’s Bookkeeper today because they are depending on us.
- As a trucking business owner, you should keep records of all your expenses and the documents that support them, such as receipts and account statements.
- If you’re also using truck management software, you can usually link the two and automate your IFTA responsibilities completely.
- However, Q7 is a great standalone trucking-specific accounting solution, while Rigbooks is ideal if you have a small fleet and want an affordable platform.
- That means you’ll be able to manage all areas of your business from one place.
- Having a business credit card will also streamline your bookkeeping because you can often separate expenses into categories, such as gas, food, and maintenance.
Finally, affordable pricing plans are an essential consideration, as many trucking companies have limited budgets. Per diems are tax deductions that cover meals at a standard amount vs having to track and deduct actual costs for meals. It’s important to claim your per diems correctly to reduce your gross income, resulting in less money owed to the IRS. To qualify for a per diem deduction, you must be away from home for the night. The first step is to research options and find one with a low interest rate that doesn’t have an annual fee. Credit cards with fuel rewards are ideal, given the amount truckers spend on gas.
How Trucking Bookkeeping Is Unique
This means the platform can be purchased directly from the QuickBooks App Store, and you can launch it from your QuickBooks account. Other QuickBooks trucking integrations require complicated setup and third-party connectors. 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. To comply with IFTA, you must report your trips and fuel purchases quarterly. The IFTA office in your home state will allocate your payments to the proper jurisdictions and determine whether you owe more or deserve a refund.
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. Electronic invoicing and payments make sending and paying bills and getting paid simpler and faster.
We highly recommend using bookkeeping apps and trucker accounting software to simplify your accounting process. Well-organized financial records can also provide a great deal of information about your business. You can use this accounting information to gauge your company’s performance and make decisions about your budget, workflow, investments, and potential growth. As an owner-operator, however, bookkeeping is an important part of running your trucking business. Understanding bookkeeping helps to give you a clear picture of your business’ performance and be prepared for when tax time rolls around. When you’re always on the road, keeping your financial records organized can be hard.
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For example, that includes data from your ELD, invoices, bills of lading, payroll statements, and tax payment receipts. Effective bookkeeping for a trucking company is a multifaceted endeavor that transcends mere record-keeping. With our comprehensive suite of specialized services tailored specifically for the trucking industry, you can expect to revolutionize your business operations. As a trucking business owner, you have to juggle many moving parts to make your business thrive. From managing routes, repairs, staffing and more—maintaining efficiency is critical. Finding the right accounting software can be one of the most important decisions an owner can make.
Without them, you run the risk of losing hundreds, even thousands, in taxes. 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. Our detailed expense analysis can identify areas where you can cut costs and improve your cash flow.
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We ranked each accounting software based on its affordability, considering the number of users included in each plan and the costs to add an extra seat. Even some CPAs are unaware of the specifics of the industry, where unique rules and changing regulations can cause you to misreport your tax-deductible expenses. 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. Remember, it can be surprisingly hard to catch up on trucking records once you’ve fallen behind. It becomes even worse if you also neglect to separate your business and personal transactions.
When a trip is entered as a dispatch, the route computes the miles per state, which is confirmed by your ELD. 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. Business accounts also foster a certain level of privacy, as business owners need not divulge information about themselves when making a transaction. Most financial institutions offer customers the option of requesting a transaction statement, which is very accurate and explicitly shows a business’s financial records over time. Today, technological breakthroughs have also impacted the trucking industry for the better.
Cash flow can be a challenge in the trucking industry, where clients often take their time to pay invoices. Remote Books Online offers cloud-based bookkeeping solutions, allowing you to access your financial data securely from anywhere, at any time. This flexibility is especially valuable for trucking companies with teams on the road. When choosing the right accounting solution for your trucking business, several factors can help you save time and effort while delivering accurate financial data. If you’re looking for a software solution that can track and manage orders, trips, expenditures, and fuel mileage with ease, Rigbooks might be the right option for you.