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Accounting Services for Trucking and Logistics Industry

accounting for trucking business

However, some trucking companies and owner operators may find general accounting software sufficient if they have separate solutions for trucking-specific needs. For example, some ELDs and fuel cards provide automated IFTA tax reports. To help narrow down your search, we reviewed 9 of the most popular software solutions for owner operators and trucking companies. These options range from standalone accounting software to comprehensive trucking management systems that also handle dispatching, fleet maintenance, and other functions.

In order for your fleet to make money, you need to get paid on time and in full. Yet many clients drag their feet and draw out the billing process as long as possible. With accounting software, you can ensure accuracy when sending itemized invoices to your customers showing exactly what they owe and why. The clearer you are about mileage and fuel purchases, the harder it will be for customers to debate the cost. Yes, you can use free general bookkeeping software like Wave for your trucking business. However, a free solution might not be enough if you have complex trucking management needs.

Contact SSB CPAs today to learn how we provide financial expertise for your industry.

A business credit card is an essential tool for any type of trucking business. So if you want to stay ahead of the curve, be sure to keep a close eye on your business trucking finances. Trucking businesses are an important part of the transportation industry. By following these steps, you’ll be able to keep your business trucking finances in order and avoid any penalties from the IRS. In addition, accounting software can integrate with an electronic logging device to automatically track hours of service and driver compliance with hours-of-service regulations. However, accrual basis accounting can be more complicated than cash basis accounting, which only records transactions when cash changes hands.

accounting for trucking business

Fixed costs are expenses that remain the same regardless of how much the truck is used, such as insurance or truck payments. Variable costs, on the other hand, are expenses that change based on how much the truck is used, such as fuel or maintenance costs. While Quickbooks can be used for trucking companies, some trucking-specific features how to create debit memo in sap are missing such as cost-per-mile calculations and IFTA reporting. However, some companies use other solutions for those tasks and find Quickbooks meets their accounting needs. Technically not a software solution but an alternative, TruckBytes provides free pre-made spreadsheets to streamline invoicing, trip reports, and IFTA filing.

How DMJ’s Trucking Accountants Boost Profitability

It can get complicated without proper guidance, leading to discrepancies, losses, and troubles with the IRS. This spreadsheet is one of the best trucking account spreadsheet templates available. If you would like a FREE copy of this spreadsheet send us an email through the contact us form. Frontline provides training and technical support to all customers, and Q7 can be customized and enhanced to meet specific needs. The gift tax exclusion is among the most valuable tools available to transfer assets to family and other loved ones without… 91.5% of trucking carriers in the U.S. operate with six or fewer trucks.

  • As a result, many truck drivers handle a significant portion of their bookkeeping without much assistance.
  • All business owners must make quarterly estimated tax payments to cover their income and self-employment taxes, and truck drivers are no exception.
  • Tracking your payments is crucial in ensuring you have enough funds to pay your drivers and cover operational costs.

On the other hand, the unprecedented growth of e-commerce has led to an increase in transport demand, boosting opportunities to generate more business revenue. You can save considerably more on software just by operating a small fleet, though some plans offer discounts for enterprise-level trucking operations. Others require a minimum number of qualified motor vehicles (QMV) per fleet. Some plans charge per user or include a set amount, anywhere from one to 25, limiting who can use the system at any given time. There may be separate types of user accounts to differentiate between back-end workers and drivers on the road.

The Benefits of Bookkeepers and Accounting Software

For owner-operator, doing bookkeeping in-house can save money since they won’t have to pay for outside services. This can be done by creating a simple spreadsheet or by using accounting software. The first step is to set up a separate bank account for your business trucking. If you’re an owner-operator or a self-employed truck driver, then you need to know how to do your trucking bookkeeping. This makes it easier to manage their businesses and ensure that their drivers are being paid correctly.

  • You can then transfer the load information to QuickBooks to create invoices, track expenses, and generate reports.
  • Factoring helps with regular cash flow by allowing you to get paid the same day that loads are delivered.
  • IFTA compliance is one of the additional accounting responsibilities unique to trucking companies.
  • IFTA reporting is also easy thanks to Rigbooks importing the latest fuel tax rates for all jurisdictions automatically.
  • Tailwind TMS provides tools to ensure records are uploaded as quickly as possible.
  • If there is a way your business could be saving money, a CPA can help you find it.

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. One of the most common mistakes small business owners make is putting their accounting responsibilities on the backburner for too long. Fuel cards can automatically track, organize, and display the information you need to fill out your IFTA expense reports.

Truck Financing Companies

For instance, you can implement direct deposit so your drivers get paid on time no matter where they are. Filing International Fuel Tax Agreement (IFTA) reports for interstate or international trucking jobs can take time. To start, you first need to create the necessary fuel and mileage reports for your fleet. Throughout the entire process you need to track receipts, manage mileage logs, match fuel to taxes in each state or province.

Turn business receipts into data & deductibles

This allows you to customize your billing workflows based on your specific requirements. Understanding financial management involves some familiarity with financial statements. The three most common documents that companies use to gauge their financial health and performance are the balance sheet, the income statement and the cash flow statement. Last but certainly not least, it’s always a good idea to hire a CPA for help with tax preparation and trucking accounting services.

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