One of the most important aspects in running a successful trucking business is not just about hitting the road; it’s also about keeping your finances in order. While the freedom and adventure that come with starting your own trucking company are exciting, many truckers forget that the administrative side of things can be quite daunting, especially if you’re not familiar with truckers bookkeeping. So, how do you manage the financial aspects of your trucking business effectively? Here’s a comprehensive guide to help you navigate the world of bookkeeping for your trucking venture.

Why Bookkeeping Matters

Bookkeeping is important for any business you start, and in the trucking industry, it’s no different. Proper bookkeeping helps ensure that you know where your hard earned money is going. It also allows you to visualize expenses and make financial plans to grow your business in the future and stay prepared for emergencies. Truckers bookkeeping doesn’t have to be complicated. You can use the help of accounting softwares to help you book keep on your own or you can hire truckers bookkeeping services to help you in this endeavor. It doesn’t matter whether you’re an owner operator or own a fleet, bookkeeping for truckers is essential to start and run a successful trucking company.

Choosing the Right Accounting System

Before diving into the actual work, you need to select an accounting system that suits your business needs. You have two primary options:

• Cash Basis Accounting: In this system, you record revenue and expenses as they occur.
• Accrual Accounting: This is a more complex system where you record revenue and expenses as they are earned or incurred, regardless of when the money changes hands.

Most small trucking businesses will choose cash basis accounting as this method is more straightforward and easy to implement Next, you need to select a software to help you keep track of your books

• Quickbooks Desktop
• Quickbooks Online
• Xero
• Zoho Books
• Rigbooks

You can import your bank and credit card statements directly to these accounting softwares instead of manually entering it. From there, you would classify each transaction to the proper account type: income, fuel expense, driver expense etc

Keeping Your Books in Check

Once you’ve chosen an accounting system, the next step is to maintain your financial records. You can use trucking management software or specialized accounting software to track various financial documents like profit and loss statements, tax estimates, and expense ledgers. Keeping these records updated is crucial for understanding your business’s financial health. An important part of bookkeeping is knowing what your fixed and variable expenses are: Fixed Expenses are expenses that remain constant regardless of your sales or business activity. No matter how much business you do or how many miles you drive, these expenses will be the same amount.

Keep track of fixed expenses

Such as,

• Equipment Loan Payments for Semi Trucks or Trailers
• Insurance Payments
• Truck Parking Rent

Variable Expenses are costs that change in proportion to a trucking company’s amount of sales or business done. The more work your trucking company does, then the more these costs will go up.

Keep track of variable expenses

Such as,

• Fuel Costs
• Estimated Taxes
• Maintenance Costs
• Repair Costs
• Finance and Factoring Costs
• Driver Pay(or your own pay if you’re an owner operator)

Tracking Your Finances

In today’s fast-paced world, it’s all too easy to swipe a business credit card or fuel card without giving it a second thought. However, this convenience can lead to a slippery slope of uncontrolled spending. That’s where bookkeeping comes in handy. Bookkeeping helps organize your expenses and income in one place, so you’re able to plan for expenses and know if you’re a profitable trucking company. Knowing your monthly profit and finances helps you understand if you’re meeting your financial goals.

Saving for Emergencies, New Equipment, and Taxes

Life is full of surprises, and in the trucking business, these surprises can be costly. Keeping track of your finances can help you plan to set aside money to protect you against unexpected events.  You should save money to help you in the following events:

• Unexpected Breakdowns or Repairs
• Insurance Renewal Down Payments
• Buying New Semi Trucks and Trailers
• Paying Income Taxes

Unexpected breakdowns and repairs happen all the time in the business or an urgent need for new equipment, having a financial cushion is essential. Good bookkeeping habits can help you allocate a portion of your monthly profit for emergencies, equipment upgrades, and even your tax obligations. This way, when life throws a curveball, you’re financially prepared to catch it.

Calculating Cost Per Mile (CPM)

Understanding your Cost Per Mile (CPM) is like knowing the fuel efficiency of your truck—it’s vital for long-term success. CPM includes all the costs associated with running your truck, from fuel and maintenance to insurance and permits. To calculate it, simply divide your total expenses by the total miles driven. This gives you a clear picture of how much it costs to operate your truck for every mile you drive.



Knowing your CPM helps you set realistic pricing for your services and identifies areas where you can cut costs to increase profitability. Before you accept a load, you can calculate whether or not it will be profitable using your CPM.

Navigating Trucking Taxes

Taxes are like a complicated puzzle, and when you’re in the trucking business, the pieces can be even more challenging to fit together. That’s why having good bookkeeping habits can be a lifesaver. You can make sure that you are taking all the tax deductions you are able to take. Planning for taxes helps you avoid audits and avoid surprise tax bills.

Payroll Taxes for W-2 Drivers

If you have drivers who are classified as W-2 employees, you’ll need to handle payroll taxes. This means you’ll be responsible for withholding federal and state taxes from their paychecks and also paying employer taxes like Social Security and Medicare. Payroll softwares like Paychex and Gusto can take care of this for you, making sure the right amounts are withheld and paid on time.

Issuing W-2 Forms and 1099s

At the end of the year, you’ll need to provide tax forms to both your W-2 employees and any contractors you’ve worked with. W-2 forms go to your employees, while 1099s are for contractors. Most small trucking companies pay their drivers as 1099. These forms summarize the income they’ve received and any taxes that have been withheld. A good bookkeeping service can generate these forms for you, ensuring they’re accurate and sent out before the deadline..

Saving for Year-End Taxes

Nobody likes surprises when it comes to taxes. That’s why it’s a good idea to set aside a portion of your income throughout the year for your year-end tax bill. Think of it like a “tax savings account.” Each month, put a little money into this account based on your estimated tax liability. Then, when tax time rolls around, you won’t be scrambling to find the funds to pay your bill. Your bookkeeping can help you figure out how much to save each month to make tax season a breeze.

Business Growth and Financial Planning

Accurate financial data is essential for making smart business decisions. Bookkeeping can offer a clear picture of your financial numbers and projections that can help you grow your business and stay ahead of the competition. It can help you know if you should take a certain load, buy new equipment, how much work needs to be done to stay profitable and more. Bookkeeping is not just important for fleet owners and people who want to grow, it’s important for owner operators as well.

Should I hire a Truckers Bookkeeping Service?

Last but not least, outsourcing your bookkeeping tasks allows you to focus on what you do best—driving and running your business. This not only increases your revenue but also improves your quality of life. If you’re a fleet owner, you can hire a bookkeeping service to help manage your books if you don’t have the time. If you’re an owner operator that stays on the road or doesn’t like to handle paperwork, then hiring a bookkeeper will be beneficial for you.

Conclusion

Bookkeeping is an essential aspect of running a successful trucking business. From choosing the right accounting system to mitigating risks and planning for growth, good bookkeeping habits can be a valuable asset not only for your business but for your personal financials as well. So, don’t let the financial side of things hold you back. Invest in good bookkeeping practices, and steer your trucking business towards a successful future! If you need help with starting your trucking company or other trucking services, contact USA Truck Permits. We help with getting your trucking authority, factoring, dispatch network, and other necessary services you need!