BookKeeping

Whether your business is small, medium, or large, and regardless of the number of employees or the nature, efficient and correct bookkeeping can make the difference between the success or failure of your business. Properly maintained bookkeeping ensures that records are always up to date and provides exact data, which can help understand the supply and demand for products or services you provide.

Bookkeeping can be performed internally or outsourced. In either case, it must be placed in the hands of professionals whose accounting ability will ensure that the company’s goals are met. Proper bookkeeping not only helps in keeping exact records but is also an essential factor in the growth of the business as it helps in meeting and exceeding the business aims and goals.

Beyond the obvious benefits, what are the other benefits to businesses of professional bookkeeping? Here are the top five reasons why it makes a difference for any business:

1. You will be completely aware of your earnings and outgoing costs. You are not required to make an educated guess as to how much money was made and spent. It will enable you to make far better choices when creating a future business strategy.

2. A professional bookkeeping service can even help you recover debts from unrecorded or forgotten sources so you can get back long-earned money!

3. When you outsource your bookkeeping, your costs will be cheaper, and you will be more cost-effective. Consider how much cash you will save!

4. A bookkeeper with ability in your business can give you expert advice and information that will be useful as you plan for the future. The direction of an expert should not be ignored!

5. When you outsource your requirements to a professional bookkeeping service, you can be sure that you will never fall behind with financial deadlines, whether it is invoices or accounts receivable reports. This means that revenue is received on time and streamlined, resulting in a much healthier financial position for the business.

TranspoCFO has helped turn around the fortunes of many companies and has helped over 50 + trucking companies keep their reputations. With a team of professionals

supported by the best technology and tools, you can be sure that your financial reports and records are always in the best hands with TranspoCFO!

Bookkeeping services for truckers help in keeping accurate records. Bookkeeping is an essential part of any trucking business. The bookkeeping service will help you stay organized and ensure your finances are in order.

Bookkeeping Tips for Truckers

As a trucker, you know that keeping track of your finances is essential. Here are seven bookkeeping tips to help you stay on top of your business’s finances.

1. Open a separate account for your business

2. Save your receipts regularly

3. Maintain records every day

4. Save all your records

5. Use bookkeeping software made for trucking

6. Know your cost per mile

7. Use online banking and credit cards to make tracking finances easier.

● Open a Separate Account for Your Business

When it is time to look at your business’s income and expenses, you must go through each transaction. And it will not be easy to remember which are personal and which are business-related. The IRS might even check up on you if you act like this.

Opening a separate account for your trucking business will help you save yourself from trouble. You do not need the most expensive business account as a sole proprietor. You can keep your business separate by opening a new personal account.

● Save Your Receipts Regularly

Most of the time, you do not think to save your receipt before you throw it away. But many costs come with driving a truck, and you want to be able to deduct as many of those costs as possible when you file your taxes. So, you can pay your taxes with all tax breaks considered.

● Maintain records every day

Keeping good records is easier if you spend a few minutes updating everything daily. Try to keep your records up to date every week.

Knowing how much money you have can make better decisions about how to spend it. It also helps you keep your transportation business running well and grow it.

● Save All Your Records

Keeping your logbooks is an easy way to keep track of your books since you already must do it.

Your logbooks are essential to any trip because they are the best way to prove how much you spent on per diem. Whether you use an ELD (an electronic logging device) or a paper logbook, you can look at the past to see how much you spent.

● Use Bookkeeping Software Made for Trucking

Using bookkeeping software for the trucking industry is one of the best ways to keep track of your books without having to double as an accountant.

Bookkeeping software can be used to:

• Keep track of your spending
• Make financial reports
• Send out bills
• Keep an eye on cash flow analysis
• Handle payroll
• Make it easier to do your taxes

Using bookkeeping software for your trucking business can save you much time and make it easier to come up with financial plans to help your business grow.

● Know Your Cost Per Mile

The most important thing for commercial truckers is the average cost per mile which is helpful in many ways:

• It helps transportation companies set the correct prices for their services based on the current rates.
• It helps your business make more money.
• It enables you to determine where high costs are to decide where to save money.
• When you plan for maintenance and repairs, you can avoid money problems before they happen.

It is easy to figure out how much you spend per mile.

Just add up all your fixed costs for the month and all your variable costs. Then divide that number by the miles you drive in a month. It is always recommended that you figure out this number again every six months.

● Minimize Your Day’s Sales Outstanding (DSO)

DSO stands for “days sales outstanding,” which measures how long it takes for your sales to turn into cash.

The faster money gets to your bank account, the lower your DSO. There is also a DSO inside and outside the company. External means how long it takes for your customers to pay you after they get an invoice.

This could be hurt by things like how happy your customers are or how often they pay you.

Internal DSO is the time taken for your invoice to be sent after you finish a shipment. For example, if it takes an extra day to use a Word template to make an invoice after delivering a load, you have increased your DSO.

Using a trucking bookkeeping service that can streamline your invoicing is an easy way to fix a problem like this.

Conclusion

Bookkeeping is an essential part of any trucking business. By keeping accurate records, you can avoid any penalties from the IRS and make sure that your finances are in order. With the help of TranspoCFO bookkeeping services, you can focus on running your trucking business.

Trucker bookkeeping services can take care of all your bookkeeping needs. It makes it easy to follow the law and keep your record bookkeeping and finances in order. So, do you need a service that keeps your books for you? Here is why the answer is yes.

As a truck driver, you know how hard it can be to keep the books. There are so many different logs to keep track of, and it can be challenging to keep a note of everything.

Best Practices for Trucker Bookkeeping

By following these simple things, you can simplify the bookkeeping for your trucking company and make more money with less work.

1. Save Every Bill You Get

Keep an envelope in your truck to collect receipts and use folders on your computer or the cloud just for that purpose. Use the folders to keep track of your monthly profit-and-loss statements and to make accurate tax estimates every three months.

2. Make Sure Your Business Has Separate Checking Account

If you own the trucking business, open a second personal account to keep things simple. By creating a separate checking account, you can avoid paying extra fees for a business account.

3. Save All of Your Logbooks

Your logbook or electronic logs prove that you are eligible for per diem (primarily composed of meal costs). If you only use your ELD for truck driver bookkeeping, save and look at your history. Inspections need to know this.

4. Always Keep a Notebook in Your Truck

Use this notebook or phone to keep track of any costs for which you do not have a receipt. To follow IRS rules, you must also keep track of the date, place, amount, and reason for each expense.

5. Maintain All Your Records

You must maintain your tax records for at least three years after filing. Keep quarterly estimated tax payments to the IRS, monthly profit-and-loss statements, insurance documents, maintenance records, warranty information, registration information, settlement and bank statements, credit card statements, and canceled checks.

6. Use an Accounting System

When you employ consistent accounting methods and processes, trucking bookkeeping becomes easy. This way, you can never forget anything.

7. Do a Month-End Closure

For truckers, it is best to close out each month by ensuring you have all of your paperwork. And that you can accurately link your income and expenses to your balance at the end of the month.

8. Make Sure Your Books Can Pass an Audit

Every year, the IRS checks on the taxes of one out of every 25 owner-operators. You do not want that to happen to you, but if it does, you want to know that you have done everything right.

Conclusion

The trucker bookkeeping service can take care of all your bookkeeping needs, making it easy for you to follow the law and keep your finances in order. So, do you need a service that keeps your books for you? Yes, that is the answer.

Good bookkeeping service for truckers will save you time and money and ensure you always follow the law. A trucker bookkeeping service is a way to go if you want to take care of your accounting needs without much trouble.

Managing your trucking company’s books is one of the most essential actions you can do to help it succeed. We’ve developed a list of 10 Smart Tips to Master Trucking Bookkeeping. From knowing your company entity type and utilizing a business credit card to lowering day sales outstanding.

1. Keep every receipt, no matter the charge

You want to deduct as many valid expenses as possible. Keep an envelope in your van to gather receipts, or utilize e-receipt files on your computer or in the cloud. Use the folders for accurate quarterly tax calculations and monthly profit-and-loss statements.

2. Keep Your IFTA Data Up to Date

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.

3. Use a different credit card for business costs

Using a company credit card may aid in the simplification of your bookkeeping, and most accounting systems link with your bank and credit card accounts. Because the data is automatically entered whenever a payment is made, it saves time and eliminates any mistakes. Having a company credit card will also help you to simplify your bookkeeping because you can typically categorize costs like petrol, meals, and maintenance.

The first step is to look at several possibilities and choose one with a cheap interest rate and no annual charge. Given how much truckers spend on petrol, credit cards with fuel benefits are great. You prevent large interest costs, make sure to pay your debt in full each month.

4. Know Your Cost Per Mile

Regardless of the number of miles traveled, your variable expenditures per mile, such as fuel, should remain fairly consistent. As the number of miles traveled grows, your fixed expenditures per mile, such as insurance, should decrease dramatically. To identify patterns or areas for improvement, you may want to compute cost-per-mile separately for each category, such as drivers, equipment, states, or consumers.

5. All of your log books should be saved.

Your logbook and/or electronic log records are your greatest proof of per diem eligibility (primarily composed of meal costs). If you rely only on your electronic logging device (ELD) for truck driver bookkeeping, ensure that you can preserve and access your past. In any case, knowing this is a must for inspections.

You should require your truck drivers to preserve three sorts of documents: trip reports, expense receipts, and maintenance receipts—and make sure they carry a notepad in their vehicle to record mileage and any expenses for which they do not receive a receipt.

Logbooks are your greatest proof of eligibility for per diem expenditures, which are mostly food expenses. Keep track of what specific payments are for, even if they aren’t immediately recorded since this will allow you to deduct as many genuine charges as possible.

6. Save all your records.

All records used to compile your tax return must be kept for three years from the date you submitted the return. All IRS quarterly estimated tax payments, monthly profit, and loss statements, insurance documentation, maintenance records, warranty information (which should be available immediately to keep your truck on the road), registration information, settlement and bank statements, trucking business credit card statements, and canceled checks should also be kept.

7. Maintain a notebook in your truck.

To comply with IRS laws, truckers must track the date, location, amount, and justification for each charge. Use this notebook (together with your receipt envelope) or a document on your computer or smartphone to record any costs for which you do not have a receipt. This covers situations such as washing your truck at a coin-operated facility or recording miles for work usage of your own vehicle. Provide your business services provider or tax accountant with a monthly record as well as any additional receipts.

8. Regularly review your finances.

Electronic invoicing and payments make sending and paying invoices, as well as receiving money, easier and faster. You no longer need to wait for a physical check to clear. Keep track of the money coming in and going out of your bank account to ensure you are paid what you’re entitled.

Check your bank accounts for spending to ensure they are real, especially if you are not the only one with access to the account. If there is a disparity, you want to identify it as soon as possible before it becomes a major problem for your trucking company.

9. Discover the Finest Accounting Software.

Whether you’re an owner-operator or operate a small trucking company, the correct accounting software can help you maximize your company’s performance.

No matter the size of your company, it’s also critical to keep thorough records on mileage and excursions. All of this information, as well as transportation management capabilities such as fleet maintenance tracking, will be provided by the optimal accounting system.

10. Choose the Best Payroll Solution.

Payroll processing for a trucking firm might differ from that of most other sectors. Working with the appropriate payroll provider can be the key to saving time and needless paperwork because drivers can be rewarded by the truckload or kilometers traveled rather than receiving a monthly or weekly salary.

Ideally, you should be able to manage unusual payroll issues and meet trucking-specific standards while also simplifying compensation calculations. Depending on the size and demands of your company, you may be better off with basic software or with transportation management tools.

In Conclusion

Regardless of the size of your fleet or how long you’ve been in business, understanding trucking accounting best practices can help you stay in compliance with industry-specific requirements. It will also assist you in making educated decisions and positioning your firm for future development. As a result, you should use these trucking bookkeeping techniques to boost profitability and save time.