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. Truckers must choose between the two fundamental methods of accounting, the cash and accrual bases. They impact your tax return significantly, so consider consulting an accountant before choosing one. Accounting is one of the least exciting aspects of small business ownership for many owner-operators.

• QuickBooks is a popular choice, offering a range of features such as invoicing, expense tracking, and tax preparation.
• But remember, a chart of accounts is usually produced at the end of the financial year and submitted to keep the company afloat.
• Net revenue is the amount of money left after accounting for expenses.
• This is where we recommend premium software like Q7 or even an integration between QuickBooks Online and RAMA Logistics Software.
• One of the main benefits of working with a trucking accountant is that they can help you save time.
• Time and time again, Trucker CFO has been there for us whenever we have needed them.
• If there is a discrepancy, you want to catch it quickly before it becomes a bigger problem for your trucking business.

Additionally, accounting can provide insights into ways of cutting costs and improving overall efficiency. Invoicing your customers promptly is a key factor in maintaining cash flow for your business because it ensures that you receive payment for your services as soon as possible. This will truckers bookkeeping provide you with the necessary funds to pay for expenses such as fuel, maintenance, and wages. Waiting to invoice can result in payment delays and potential disputes over billing issues, which could strain the relationship with your customers and potentially result in loss of business.

Zoho Books

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. In the event of a lawsuit or bankruptcy, separate accounts make it easier to demonstrate that the business is a separate entity from the owner’s personal finances. It can also enhance the professional image of your business because it shows customers and vendors that you have a separate financial identity and you’re managing your business responsibly.

• If necessary and available, we sign up for these platforms and closely study how the features work in real-world scenarios.
• That way you can choose the most profitable loads and avoid wasting time and money.
• For example, if you place your truck into service in July, the due date is August 31.
• Ideally, this would address unique payroll scenarios and fulfill trucking-specific requirements while also simplifying salary calculations from the back end.
• Hiring a trucking bookkeeping service is a great investment given that you have done a thorough research and chosen a service provider that understands your business dynamics.

We’ve been helping independent owner-operators like you for over 50 years. Let our experts help with permitting, compliance, insurance down payments, and more so you don’t have to tackle it all alone. TBS is dedicated to spending the next 50 years making it easy for independents to get started and stay rolling. To start your trucking business, you need a Motor Carrier Authority from the Federal Motor Carrier Safety Administration (FMCSA). During the 14-day protest period, TBS will establish your BOC-3 while you file for insurance. You have two options for deducting the cost of meals and lodging—either by how many days and nights you were on the road or with your receipts.

Zoho Books: Best Mobile Accounting App for Independent Truckers

With truckers filing taxes quarterly, it’s helpful to make sure your books are tidy and updated at all times. Doing so will help you save time and money, making it a solid baseline for accounting as a truck driver. Processing payroll for a trucking company can be different 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. Working with the right payroll provider can be the key to saving time and avoiding unnecessary paperwork. See our top-recommended fuel cards and find the one best suited for your trucking business.