Basic Accounting For Trucking Companies & Truck Drivers

Emergencies such as truck breakdowns, accidents, or other incidents can result in significant expenses. Accounting is perhaps one of the most crucial departments of any business, including trucking and transportation. A good and efficient accounting department helps retain customers and keep your employees happy. These include Quickbooks for accounting and Motive for service hour tracking. Accounting tools in ProTransport are aimed at keeping things simple. Invoices can be auto-generated, fuel card data can be imported directly from any major provider, and taxes (including IFTA) can be calculated.

  • In this 21st century, there’s software to manage many aspects of a trucking business.
  • This can be done by creating a simple spreadsheet or by using accounting software.
  • The trucking industry or trucking management software uses accounting for tracking business and truck drivers.

Not all accounting service providers are suitable for trucking businesses. It’s best to hire a company specializing in the trucking industry, like Factoring Express. This way, your accounting firm knows how your business works, and you need to manage your finances.

It can track and categorize your expenses automatically, though you may need to keep some supplemental records. Focus on growing your business with our cloud-based accounting and bookkeeping solutions. Our cloud-based accounting services eliminate the need for time-consuming paperwork and data entry, allowing you to streamline your business.

QuickBooks is not specific enough.

This can help you cover unexpected expenses and emergencies without affecting your business’s financial health. It can provide key insights into your profits and losses so you can find areas to improve and grow your business. However, premium accounting software is worth it in the long run since it can save you time and manpower in managing your accounts. Using software for accounting can help you manage the different components you need to determine the financial well-being of your company. For smaller or growing companies, it may allow you to operate without needing an in-house accounting department or accounting personnel. The income statement shows how money flows through the company over a period of time.

It is important to have different account categories for truck purchases, repairs, and truck loading and unloading tools. For example, their IFTA mileage tracker auto-records toll and non-toll mileage to automatically create IFTA tax reports. 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. Truckers must choose between the two fundamental methods of accounting, the cash and accrual bases.

Payroll control:

Q7 by Frontline Software Technology is an all-in-one solution that offers a comprehensive set of features tailored specifically to the needs of the trucking industry. It allows you to manage bookkeeping tasks, such as paying bills, sending invoices, and reconciling bank accounts. It also has a powerful fleet maintenance program that will track your fixed assets and help you schedule routine maintenance, whether it’s based on months or miles driven. Tailwind TMS provides a full range of invoicing and bill payment features. It’s an ideal solution for businesses needing a comprehensive trucking management system. It does not include payroll or bank reconciliation but can integrate with Quickbooks to give a complete accounting service.

Why You Should Work with a Professional Trucking Accountant

Tracking your income and expenses regularly is essential to stay on top of your business’s performance, identify financial trends, and avoid surprises. Keeping detailed records can be helpful in making informed decisions about the future of the business. Separating your business and personal finances can help you keep track of your business’s financial health and make it easier to manage your finances. 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. While QuickBooks Online handles all your accounting processes, RLS helps you accomplish trucking-related tasks.

Understand Accrual Basis Accounting

Profit is the amount of money left after accounting for all expenses. Trucking businesses need to maintain accurate and timely financial records, given the complex nature of the industry. Inaccurate accounting can result in penalties, fines, and potentially even lawsuits. If you have a small accounting team or don’t have an in-house accounting team, you can hire Transpo CFO to take care of accounting and tax preparation. They’ll monitor your accounts, process your expenses, pay your bills and give you reports to track your profits and business growth. Overall, there’s no single accounting or trucking management software that can cover all the various needs of truck drivers and fleet managers.

Implement a System for Invoicing and Payments

These include day-to-day records like fuel receipts and payment transactions. Accounting software makes bookkeeping easier by letting you scan receipts or enter data in one place so that it’s readily available when needed. Finding the right accounting cfa annual dues software for your trucking business can seem daunting but choosing the right one will save time and money in the long run. In trucking businesses, it is important to keep track of all your expenses, incomes, and other relevant information.

TruckingOffice is a TMS service that helps owners and operators track their miles, manage their expenses, pay attention to their profits and stay on top of fleet maintenance. However, they’re best used in tandem with QuickBooks for more comprehensive accounting and tax services. For as low as $19 per month, you can track business expenses, fuel mileage, trips, and orders for a single truck.