Most truckers use trucking bookkeeping services to handle their bookkeeping needs. Truckers should maintain separate accounts for personal and business expenses to make it easier to track and prove a clear separation between personal and business expenses. 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. There is an essential partnership between trucking companies and towing companies, and truckers depend on towers when there is a mechanical breakdown.
Keeping track of your IFTA data is one of the most crucial aspects of owning a trucking company. You must submit an IFTA report detailing the miles traveled and gallons purchased at the end of each quarter. These reports will establish whether you still owe tax or whether you are entitled to a refund. The IFTA office in the home state of your trucking firm will notify you of your refund or debt. I am the owner and head publisher for Trucker Daily and a freight brokerage Total Connection Logistics.
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Trucking companies require various types of insurance coverage, from liability insurance to cargo insurance. Remote Books Online can help you manage your insurance documentation and ensure you have adequate coverage to protect your truckers bookkeeping assets. 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.
- While we recommend even sole proprietors keep their business finances separate, this practice also provides a level of legal protection for S-corp and limited liability company (LLC) owners.
- For instance, you can implement direct deposit so your drivers get paid on time no matter where they are.
- If your bookkeeper also calculates your tax estimates, they are able to use your P&L statements throughout the year to let you accurately know how much your estimated tax payments should be.
- Finally, Tailwind TMS’ pricing falls in the mid-range when compared with other software options on our list.
- While in-office personnel can be paid in person regularly, truckers might be on the road when payday rolls around.
The cash basis involves recognizing revenues when you receive payments and deducting expenses when you pay them. Logbooks are your best proof of entitlement to per diem expenses, which are primarily comprised of meal costs. Have them keep notes of what specific payments are for, especially if they aren’t recording them immediately as this will help you deduct as many legitimate costs as possible.
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Use the folders for your monthly profit-and-loss statements and accurate quarterly tax estimates. For example, if you utilize a bookkeeper who offers tax reconciliation services as well as industry benchmarking data, they can help you spot expense documentation you may have forgotten to send. If the average owner-operator is spending 30% of their revenue on fuel, and you only show 10% of revenue spent on fuel, your bookkeeper should be able to alert you to the discrepancy. From there they can figure out if you have not sent all fuel expense documentation that needs to be submitted, or if you simply spent less on fuel.
- The best trucking accounting software can be a standalone trucking-specific program or a versatile accounting solution that seamlessly integrates with specialized trucking tools.
- Achieving lasting success in the highly competitive trucking industry critically depends on achieving financial clarity and implementing effective bookkeeping practices.
- Overall, there’s no single accounting or trucking management software that can cover all the various needs of truck drivers and fleet managers.
- At the end of each quarter, you must submit an IFTA report that lists the miles driven and the gallons purchased.
- If you’re trying to decide whether to buy fuel in one state compared to another, then you’ll need to subtract the state fuel tax from the retail price you pay.