Trucking Accounting: Essential Tips and Tools

Without a good understanding of this information, you won’t know if you are succeeding or failing. That limits your ability to make informed decisions, operate effectively and position your company for future growth. Are you looking for ways to expand your business or cover operating truckers bookkeeping service expenses? To stay in compliance, file Form 2290 with the IRS and pay any applicable taxes by the last day of the month after the month you first used the vehicle on public highways. For example, if you place your truck into service in July, the due date is August 31.

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Some owner operators take this approach, but it is easy to make mistakes. Instead, most owner operators opt for scaled-down software to streamline their bookkeeping. Trucking management software is most often used by companies managing medium to large fleets. Owner operators and small fleet owners may have a hard time justifying the higher cost of a full TMS if they are unlikely to use the extra features. While we recommend even sole proprietors keep their business finances separate, this practice also provides a level of legal protection for S-corp and limited liability company (LLC) owners.

• We had just made the transition to become owner-operators, and we knew that we needed someone we could trust to handle our business needs.
• Using a trucking management software that is linked to your ELD streamlines your IFTA and IRP prep.
• However, some trucking companies and owner operators may find general accounting software sufficient if they have separate solutions for trucking-specific needs.
• Trucking accounting software streamlines financial management by efficiently handling payroll and expense-tracking tasks.
• Mixing personal and business finances can make it harder to track expenses and manage cash flow.

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You can deduct the greater of 80% of the per diem rate for each day or deduct 80% of the total expenses for the receipts you have collected throughout your trip. It’s also essential to keep proper documentation on hand in case you’re ever audited by the IRS. If you’re just starting your business, you’ll have to factor in the costs of the trucks themselves and the insurance to cover them.

Top Trucking Accounting Software Options

When it comes to accounting software for trucking businesses, integration with other systems is crucial for efficient operations. Many trucking accounting software solutions on the market offer seamless integration with popular accounting platforms. This integration allows for better expense tracking, invoicing, and financial reporting. In the trucking industry, it’s essential to have customizable invoicing solutions that cater to specific business needs. In addition, these software solutions enable users to generate invoices automatically based on completed work orders. From keeping track of expenses to ensuring compliance with industry regulations, there’s a lot to handle.

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We do our best to respond to every email within just a few hours of receiving it. All tech support is handled in-house by the people that created the product. Having an accountant do everything might sound like a great option – but the truth is it’s your business. Having your accountant handle all of the numbers might take the burden off of you but it wont allow you to understand your entire operation and plan for it’s future. Rigbooks keeps your data backed up at all times and SSL (https) encryption is standard with all accounts. You can cancel (and get all of your data out of) your account at anytime with one-click.

Keep Track of Upcoming Invoices

• To summarize, invoice management and billing solutions in trucking accounting software streamline essential business processes, saving time and reducing errors.
• This ensures truckers can maintain healthy relationships with both clients and suppliers by paying bills and collecting payments on time.
• They can help you make informed decisions about investments, expansion, and other financial matters.
• Trucking accounting software is the best option for trucking companies because it is designed to meet the unique needs of trucking companies, such as mile and IFTA tracking.

If you link your trucking accounting software to your business bank account and credit card, it should track your every invoice and expense automatically. Additional options include an electronic data interchange (EDI) and a fuel card interface. Rigbooks is a straightforward bookkeeping application that was designed specifically for trucking businesses. The software places a top focus on translating costs into per-mile calculations. This focus is intended to make it easier to calculate load values and stay on top of receipts for tax filing. While available for businesses of all sizes, Rigbooks is designed for owner operators and small fleets.

• One of the most useful features of TruckLogic is its integration with other trucking industry tools.
• Depending on the type of business you’re operating, you may also be required to pay other taxes, such as payroll tax or unemployment tax.
• Yes, Rigbooks provides English speaking email support for all customers.
• IFTA was put into place to redistribute the tax to the states where the fuel is being used, not where it’s purchased.
• These include day-to-day records like fuel receipts and payment transactions.

Which software offers a comprehensive accounting solution for small trucking businesses?

Depending on the size and needs of your business, you may be suited better with software that provides the basics or one with trucking management features. Processing payroll for a trucking company can be different https://www.bookstime.com/articles/debt-to-asset-ratio than most other industries. Since drivers can be compensated by the truckload or miles driven instead of receiving a monthly or weekly paycheck, it can be confusing and time-consuming without a proper system.

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This business bank account can be used for your business transactions, such as paying suppliers or invoicing customers. Most times, a bank will require a separate business bank account to issue a business loan or line of credit. Regular accounting software makes you do messy calculations to figure out basic truck operating expenses like cost per mile. Not only is that error-prone, it’s inefficient because you waste a lot of time on extra work you shouldn’t have to do. The truth is trucking businesses like yours need to track things differently… the success of your business is centered around your costs per mile. The expert you hire does not have to work full-time but can be on call to help with specialized services and questions, keeping down on the total cost.

The best trucking accounting software providers typically offer multi-channel support, including phone, email, and chat support options. Another example is Axon, a trucking accounting software, which offers integration with both QuickBooks and Zoho Books. Such integrations enable trucking companies to synchronize data between the accounting software and Trucking Management System (TMS) for improved efficiency. This ensures truckers can maintain healthy relationships with both clients and suppliers by paying bills and collecting payments on time. Trucking management software that targets large trucking companies often creates pricing plans around the company’s needs but these typically range from $99 up to $500+ per month.