Basic Accounting For Trucking Companies & Truck Drivers

If you rely solely on your electronic logging device (ELD) for bookkeeping for truck drivers, make sure you can save and access your history. For example, TruckingOffice can be used trucking management and basic accounting functionality but needs Quickbooks for payroll. Finding the right accounting software for your trucking business can seem daunting but choosing the right one will save time and money in the long run. In order for your fleet to make money, you need to get paid on time and in full.

• Any trucking business, no matter what size, needs to keep accurate records to ensure compliance with government regulations and maintain a healthy bottom line.
• You might consider upgrading to the Enterprise plan to offer customer and carrier self-service portals.
• The IFTA is a way to redistribute the fuel taxes truck drivers pay in the lower 48 states and the 10 Canadian provinces.
• As a result, many truck drivers handle a significant portion of their bookkeeping without much assistance.
• IRS classifies semi-trucks as qualified nonpersonal use vehicles which means companies need to use actual costs rather than employing the standard mileage method.

One of the critical aspects of carriers (truck drivers or trucking companies) is zero-rated HST, which means GST/HST of 0% is charged, so you do not collect the GST/HST. Besides, you may be eligible to recover bookkeeping for truck drivers GST/HST, which you already paid on your purchases (ITC), and an experienced accountant can help you get a maximum GST/HST refund. At Taxory, we are preparing tax returns for tax drivers and trucking companies.

Accounting for Trucking Companies

With a secure online portal, you don’t have to go into an office or call your bookkeeper to access your information. This is especially convenient for truck drivers who are on the road and aren’t always able to go in and talk to their local accountant. Bookkeeping is an important part of running your business as an owner-operator truck driver.

With such an amount of activities, it is understandable that truckers tend to avoid bookkeeping and accounting tasks. Fortunately, accounting firms can help truck drivers and trucking companies with accounting and bookkeeping needs. Put simply, cash basis accounting means writing down a transaction when money changes hands. When a payment is received for a service, such as a delivery, trucking businesses using cash basis accounting would enter the information into the general ledger.

Deduct from your taxes

Regardless of the industry, specialized accounting software should include general bookkeeping features like A/P, A/R, and bank account reconciliation. Gross profit is the amount a business makes before considering business expenses. Net profits are what is made after calculating expenses such as payroll, fuel, and all other operating costs. For example, most small business owners can only take 50% of meal expenses, but truckers are allowed to take 80% of either their actual costs or per diem allowances. One of the primary problems with managing your small business accounting is the sheer amount of time and energy it takes.

• Sorge CPA offers high-quality accounting and bookkeeping services for businesses across various industries as well as advice on accounting software options.
• Save all the receipts of the expenses you have on the road and send them weekly.
• Optimize your payroll with trucking accounting software which can account for mile-by-mile expenses, loads, and other driver settlements.
• While Tailwind TMS isn’t a complete bookkeeping solution, it’s great for invoicing and bill payment, which are two major needs of a trucking company.
• Use the contact information below to reach us byphone or email and get a quote for our services.

An owner operator, like any other small business owner, will need to document all income and business expenses. Trucking companies need to be very vigilant when it comes to correct record keeping. Well, we’ve reached our final destination in this truck driver accounting software review. Made by Frontline, the software technology firm that develops many products for trucking, shipping and transportation, here is the app called Q7.

Best Trucking Accounting Software in 2023

Because the IRS sees semi-trucks as qualified nonpersonal use vehicles, you must deduct your actual auto costs instead of using the standard mileage method. Keep records of each purchase’s amount, date, location, and business purpose. The accrual basis of accounting requires that you recognize revenues when you earn them and expenses when you incur them, regardless of when funds enter or leave your accounts. It takes more work, but it also documents your profitability more accurately. Because working in the trucking industry involves taking on significant risk, you’re often better off taking the time to form a limited liability company (LLC) or a corporation. As a sole proprietor, you and your trucking business are a single entity.

• Use this notebook (in addition to your receipt envelope) or a document on your computer or smartphone to record any expenses you cannot obtain a receipt for.
• It equals $100 plus $22 for every 1,000 pounds over 55,000 pounds up to $550 and 75,000 pounds.
• 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.
• The software targets larger trucking businesses that want to minimize their office staffing.
• You may submit a summary of your expenses using our online form or you may choose to include it in your monthly expense envelopes that you provide to us.
• Without accurate bookkeeping, it would be very difficult for trucking companies to stay in business.

You can either choose a comprehensive service package or several products that you need for your business. Additionally, Quickbooks integrates with multiple trucking management solutions so companies that start with Quickbooks can always add on additional trucking software down the line. TruckingOffice offers standard bookkeeping features and allows for invoicing on variable fees, such as flat, per ton, per mile, or by weight. IFTA tax reports are also generated automatically, with options to choose which trucks to include in the report. Axon also handles payroll with trucking-specific pay calculations and expense tracking. It also manages employee and contractor paperwork like W-2 and 1099 forms.

TruckingOffice

Another thing you should look for when deciding on a trucker’s bookkeeping service is a company that has industry-specific benchmarking. Ideally, you’ll want to look for a company that works with other truck drivers so you can compare your numbers to similar sized businesses in the trucking industry. Trucking https://www.bookstime.com/nonprofit-organizations bookkeeping is easier if you use consistent accounting systems and practices. Most trucking businesses use either a cash-based or accrual-based accounting method. Your logbook and/or electronic log records are your best proof of entitlement to per diem expenses (primarily composed of meal costs).