Bookkeeping Tips for Trucking Companies
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15 Feb 2023
Bookkeeping Tips for Trucking CompaniesFew businesses are as vulnerable to economic fluctuations as those operating in the trucking and transport industry. Trucking and transportation is a unique industry that has always been challenged by a disruptive environment because of technological changes and fluctuating customer demands. With low margins, constantly-changing state tax laws, maintaining operations and fleets, etc, trucking companies need to implement radical Transportation and Logistic Financial solutions in their processes. Whether you’re a single-truck owner-operator or run a small fleet of trucks, knowing your finances is critical to monitor your business profitability. To maintain a healthy trucking business, owner-operators, and small fleets need to manage a wide range of documents, which can be overwhelming. Because of the high vulnerability to economic fluctuations, transportation businesses require professional accounting and bookkeeping services to make informed decisions, identify areas of potential cost savings, manage operations efficiently, and ensure long-term business sustainability. Accounting for the Trucking business differs from regular business accounting in more ways than one. In addition to common bookkeeping practices such as accounts payable (A/P) and accounts receivable (A/R), companies should manage operations with mileage tracking, fleet management, dispatching services, and IFTA reporting. With the right tips, tools, and guidance, you can be sure that your business’s finances are in order. Key Bookkeeping Tips And Best Practices For Truckers
- Save every receipt irrespective of how insignificant the charge
- Keep a separate folder or an envelope on your truck(s) to keep the receipts
- Try to keep the receipts in a sequence (date-wise) as it will reduce the efforts later during the bookkeeping exercise.
- Maintain both physical and electronic (scanned) copies of receipts as physical receipts tend to fade out with time.
- Scanned photos of receipts are acceptable. However, try to save the hard copies for warranty purposes when purchasing large-ticket products
- Keep the scanned copies in a dedicated folder on your computer or in a cloud folder which can be accessed anywhere when you are on the go.
- Keep a notebook and logbook on your truck(s)
- Keep your records up to date
- Open a Separate Business Checking Account
- Use a separate Credit Card for business expenses
- Use an accounting system
- Keep Your IFTA Data Up-to-Date
- Know Your Cost Per Mile
- Minimize Your Day Sales Outstanding (DSO)
- Plan For Necessary Expenses