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The Basic 6 Tips for Trucking Bookkeeping Services

The Basic 6 Tips for Trucking Bookkeeping Services

One of the most significant actions that successful truckers should use to their advantage is bookkeeping. Income tax reporting and minimization, warranty concerns, maintenance information, and monthly profitability are just a few of the areas where receipts and records are kept.

The better organised and detailed your receipt collection is, the better (whether you hire a business services provider or not).

Trucking bookkeeping services are easier by following six simple steps that will result in more earnings with less effort.

Every receipt should be saved, no matter how tiny the charge appears to be.

What is the point of “tipping” the taxman? You want to be able to deduct as many reasonable expenses as possible from your taxes. Keep a receipt envelope in your van, or save e-receipts to dedicated folders on your computer or on the cloud. Monthly profit-and-loss statements, as well as correct quarterly tax predictions, should be filed in the folders.

Scanned photos of receipts are OK, but save original paper copies of any large-ticket purchases for warranty purposes.

Create a second company checking account.

If you’re the only proprietor of your company, open a second personal account for convenience’s sake. As well as to avoid the extra fees that come with business accounts. Pay yourself out of these funds after depositing settlement cheques into this account. For ease of recordkeeping, pay all business expenses from this account. In the event that you are audited, having a separate account will offer you convenient access to required information.

For business expenses, use a different credit card.

Find a credit card with a low-interest rate, no annual fee. To avoid accruing more business debt, pay the balance in full every month. Another approach to make recordkeeping easier for trucking bookkeeping services is to use a credit card for company costs. You can usually segregate expenditures into categories using a credit card (gas, food, maintenance, etc.).

All of your logbooks should be saved

Your greatest proof of eligibility to per diem expenditures is your logbook and/or electronic log records (primarily composed of meal costs). Make sure you can save and access your history if you rely only on your electronic logging device (ELD) (this is mandatory thing to know for inspections anyway).

In your truck, keep a notebook.

To record any expenses for which you do not have a receipt, use this notebook (in addition to your receipt envelop!) or a document on your computer or smartphone. This covers things like washing your truck at a coin-operated facility and recording mileage for personal usage of your vehicle for business purposes. Send a monthly record, along with any other receipts, to your business services provider or tax accountant for trucking bookkeeping services.

Make a backup of your documents.

From the date you submitted your tax return, you must maintain all records used to compile it for three years. 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 statements and bank statements, business credit card statements, and cancelled checks should be kept as well.

Read More: Best Personal Finance Apps

How to Make Recordkeeping Easier

The organisation and reporting of your owner operator income, expenditure, profit and loss reports, and taxes can be greatly aided by business services. However, if you’re an owner-operator who wishes to operate your firm on your own, you’ll need a reliable system to keep recordkeeping as simple as possible.

Here’s an example of a very basic owner-operator recordkeeping system.

  • An office supply business can provide you with an expanding file folder, a stapler, and a desktop calculator with register tape. Fill in the many types of expenses and incomes on the growing file folder’s pocket labels, such as maintenance, fuel, meals and entertainment, equipment, settlements, and office supplies.
  • Drop a receipt or settlement statement into the appropriate pocket when you obtain one.
  • Add the receipts in each pocket at the end of each month. Label the month and year on the calculator’s register tape. Then staple the printout to each appropriate stack of receipts and place the bundle back into the corresponding slot. Those will not mixed beacuse all are in a file. You’ll have everything you need sorted and ready to go at the end of each quarter or year.
  • This technique can be supplemented by recording your odometer reading on the first of each month, allowing you to track your true cost per mile for the month. Better, keep track of your odometer readings each time you start a new load so you know how much each load costs each mile.

What are the responsibilities of a bookkeeper?

  1. Keep track of dispatches and make sure they’re billed and paid.
  2. Keep track of your journey costs and receipts for gas.
  3. Keeping track of taxes like the IFTA and IRP is essential.
  4. Pay the drivers
  5. Pay the expenses for the repairs.
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