By clicking ‘Start a Free Trial’, I agree to Bench’s Terms & Privacy Policy. The essence of an updated financial record is to have a clear view of the business’s present bookkeeping for truck drivers financial situation. Understanding your business’s current position can effectively help make long-term and short-term decisions needed to run and grow the business.
In addition, it is a good way of measuring the business’ success, so it is often worth recording. In bookkeeping, equity is the amount of money to be returned to the owner if the business sold off its assets and settled any debt. For example, if you decide to retire from truck driving, you may sell your truck and pay back the bank any debt you owe. Not only that but your truck would also be known as a non-current asset (also known as a fixed asset).
- Your commercial vehicle is already legally required to have an ELD installed, and if it’s already synced to your TMS, make sure everything is in tip-top shape to avoid lost data.
- We have partner organizations who can provide those services if needed by clients.
- Being a functioning current account, Countingup can also send you reminders to record your purchases.
- Here, our bookkeepers for truck drivers highlight four key reasons why owner-operators can benefit from hiring a professional bookkeeper.
- In broad terms, bookkeeping involves maintaining financial records of your trucking business’s day-to-day transactions in a general ledger.
Unlike other outsourced accounting solutions, once we understand the current state, we identify areas to improve the total process rather than continuing the status quo. Track everything and always have the documentation to support a compliant approach. You need to ensure that you have the relevant insurance to be a self-employed truck driver.
Deferring your expenses to a business credit card and paying them off in full before interest accrues can be a helpful way to purchase what you need right away. Building credit for your business is important, but it is equally as important to make sure that your liquid cash flow is available when you need it. There are a host of credit cards designed for businesses with perks that will help you save money. 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.
TAX & BUSINESS SOLUTIONS FOR TRUCK DRIVERS
On top of this, it’s wise to have digital copies of everything as well because physical copies of receipts can sustain damage that makes them illegible. Just like saving your receipts, keeping records of your log books is important, too. They can be digitized in the same way that receipts can, whether that be in a TMS or a digital logbook that declutters your office.
Accounts Payable & Receivable
Being a functioning current account, Countingup can also send you reminders to record your purchases. For example, it’s likely to need an MOT, VED (vehicle excise duty), regular servicing, and possibly repairs. With Countingup, you can categorise your transactions so that you can see exactly how much your truck is costing. For example, when you are hired to take some cargo from one place to another, whatever you are paid for would be your revenue. The money comes into your business before your expenses are taken away from it. Taking notes also helps track all cash inflows and outflows, making it easier to chase down invoices.
TruckingOffice PRO or QuickBooks? TruckingOffice.
With new technology being introduced every day, we’ll always be looking for ways to keep elevating accounting operations. As your company grows, we’ll have the processes in place to grow together without any issues. After we have collaborated to agree on the process and technology, we will get your unique accounting operational system in place. We’ll set everything up and can even train the relevant team members on the new capabilities.
There are numerous means and benefits of engaging in bookkeeping as a trucking business owner, and we discuss all these in detail. Our catch-up services are designed to bring your financial records up to speed. We meticulously address any gaps, ensuring that your records are not just current but also compliant.
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. With an accrual system, you recognize revenue when it’s earned (before it’s paid) and bills when received (before they are paid). TBS will process your MC#/USDOT Number and BOC-3 for free (both are required to activate your authority), with no annual membership fee or application processing fee.
Most trucking business owners likely don’t have accounting experience, so the best bookkeeping software for truckers should be easy to understand and use. However, while it’s an all-inclusive software, we still https://adprun.net/ believe QuickBooks Online with RLS integration is generally better, as QuickBooks has more robust accounting features. Also, it’s easier to use and seek professional support help, if needed, with QuickBooks.
For this reason, truckers who own their own company gain advantages from working with a bookkeeper. Here, our bookkeepers for truck drivers highlight four key reasons why owner-operators can benefit from hiring a professional bookkeeper. As a truck driver, owning and operating your own business has the potential to be highly lucrative. According to a report from Trucks.com, independent truck drivers (owner-operators) earn more on average than company drivers. At the same time, owning and managing your own trucking business can be challenging. 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.
Understand Your Business Entity Type and Tax Classification
The accounting software recommended in this article comes with mobile apps, so even if you’re not at your desk, you have no excuse! You’ll also have an easier time tracking and documenting your spending, as most accounting software can integrate with your bank account. This cloud-based truck management software allows you to track fuel mileage, expenses, trips, and orders. While it’s not as well-rounded as the other options on this list, its most popular feature can help improve your bottom line.