Basic Accounting For Trucking Companies

FreshBooks makes invoicing painless for trucking and transportation companies. Powerful features let you request deposits for freight, add discounts, set up payment schedules and even automate late payment reminders and fees. See all of your paid and outstanding invoices at a glance so what is balance b/d and balance c/d you know exactly who owes you what.

Accounting Software by Industry

In addition to these features, Xero also offers standard accounting features such as invoicing, payroll management, and financial reporting. For example, trucking accounting software can automate the invoicing process, reducing the time it takes to create and send invoices to clients. It can also automatically calculate driver settlements, ensuring that drivers are paid accurately and on time. These features can help businesses save time and reduce errors in their financial management processes. Trucking accounting software combines back-office bookkeeping functionality with industry-specific features necessary for fleet management. In particular, the accounting services cover invoice processing, receipt generation, and general expense management.

Meet IFTA Compliance

Small businesses can also start with Quickbooks and then later pair it with a trucking management system that integrates with Quickbooks. However, these business accounting systems can fulfill the specific needs of independent owner-operators, carriers, and fleets of all sizes. All business owners must make quarterly estimated tax payments to cover their income and self-employment taxes, and truck drivers are no exception.

Effective Accounting Creates Sustainable Transportation Businesses

It lists all revenue and expenses for a set period of time (usually quarterly depreciation tax shield calculation or annually). A profit and loss statement can also be used to calculate cost-per-mile, helping you choose loads that will maximize your business income. Invoices can be auto-generated, fuel card data can be imported directly from any major provider, and taxes (including IFTA) can be calculated. On the management side, TruckingOffice covers dispatching and maintenance tracking. In some circumstances, it may be better for your trucking business to invest in separate software for your TMS, trucking, and accounting systems. Fortunately, you don’t need to hire an accountant for your business full-time.

What Type Of Taxes Does A Trucker File?

Fuel cards can automatically track, organize, and display the information you need to fill out your IFTA expense reports. If you’re also using truck management software, you can usually link the two and automate your IFTA responsibilities completely. A line of credit can feel like a loan, and this can make some trucking businesses nervous to open one. However, your ideal situation is to never have to use your line of credit at all. Instead, a line of credit is there for major emergencies and significant disruptions to your cash flow that will help your business stay afloat until your cash flow improves.

Many business owners learn too late that mingling your personal and business funds makes it hard to identify which transactions belong in which category. Accounting is one of the least exciting aspects of small business ownership for many owner-operators. However, you can’t afford to neglect it since your responsibilities can quickly become overwhelming if you fall behind. Nobody enjoys paying taxes, but if you want your business to be not a business quickly, see what happens when you underpay on your taxes. The IRS charges between 5% to 25% on the underpaid amount, and with interest accruing for taking too long to pay those penalties. It’s not a reserve you’re going to create overnight, but if you’re adding to this amount over time, you’ll get there.

With software, trucking companies can also balance accounts payables and receivables in changes in working capital a general ledger to ensure their financial statements add up. North One has designed business banking services for small business owners across America. Our services help small business owners manage their finances, save for expenses, monitor cash flow, and more.

1. Surviving in the transportation industry as a small business owner or owner-operator has never been more challenging than it is today.
2. One of the most useful features of TruckLogic is its integration with other trucking industry tools.
3. Hiring a professional bookkeeper can be expensive and most accounting systems seek to make a bookkeeper unnecessary for small businesses.
4. Last but certainly not least, it’s always a good idea to hire a CPA for help with tax preparation and trucking accounting services.
5. TruckingOffice is another popular option for midsize and large trucking businesses.

ProTransport does not advertise its pricing and does not offer a free trial of the software so a demo will be required. ProTransport customers are provided with phone and email customer support. Users report the system is easy to use and can efficiently replace the admin time of several staff members. However, It can be slow to receive help because technical support is by email only. Users should take advantage of the 30-day free trial to try out the software before committing.

Ease of use is also important, enabling staff to operate the software effectively without extensive training. PCS offers a complete payroll system, facilitating everything from driver to back-office payments, including direct deposit and fuel card options for quicker driver payment. A cash flow statement shows how much actual cash the company has on hand. This is an important statement for small businesses and entrepreneurs because it shows a company’s day-to-day financial health. While the income statement shows how your company performed in the past, the cash flow statement shows how cash is being generated or used. A company can show a profit on its income statement, yet still go out of business because of a temporary negative cash flow.

Selecting suitable software is essential as trucking involves substantial data management. While general accounting platforms like QuickBooks, Xero, or FreshBooks are effective, trucking-specific software that incorporates the unique aspects of trucking finances is ideal. Whether it’s a problem with the numbers or the software, there may be times when you need help from a professional. Some trucker accounting software will offer live support options, so you can talk to a professional accountant or tech support to help you manage your finances. Before you choose a trucking accounting software, get quotes from a couple of different platforms and compare their features, user-friendliness and any hidden fees lurking.