While you may enjoy owning and operating your own trucking company, you may feel that the accounting and bookkeeping aspects of the job are unnecessary. To manage your company’s finances, you don’t need to become a master of record-keeping.
Here are a few pointers to get you started
Make it a habit to do it every day.
Do yourself a favor and make it a habit to set aside time each day to deal with owner-operator expenses. It’s tempting to put off a chore until tomorrow or the weekend, but this only adds to the workload. Daily bookkeeping will not only make your life easier but will also provide you with a more accurate picture of how your firm is performing, allowing you to plan and change accordingly. After all, you don’t want to make business or financial decisions for tomorrow if you don’t know what happened the day before.
Make Use of the Appropriate Software
There are more options for bookkeeping and accounting software than ever before. Examine your alternatives to determine which is the greatest fit for you and your company. You might be better off using a cash-based approach, which allows you to track your income as you receive payments and your costs as you pay them. Don’t be hesitant to experiment with several types of software (especially if there are free trial options available) until you find one that works well for you.
Think about becoming digital.
When it comes to keeping track of financial records, go digital because the paper may take up a lot of room and become difficult to arrange, adding even more time to your daily workload. This is a particularly good option if you already have a lot of papers to deal with on a regular basis. Keep all of your bills and bank statements in the cloud so you can view them from a computer, tablet, or smartphone with ease.
Learn How to Manage Your Cash Flow Properly
When it comes to bookkeeping for trucking, one of the first things you should master is the basics of cash flow. Knowing how much money you have on hand at any given time might mean the difference between paying your suppliers and employees on time and incurring late fees or losing team members. Money or payments due later in the month won’t help you much right now, especially if those payments are likely to be delayed.
Audits can be avoided if you prepare ahead of time.
The IRS sniffing about your business is the last thing you want to deal with as a business owner. Truck drivers’ bookkeeping necessitates a considerable deal of planning, including audits. Keep your personal costs and accounts separate from your business expenses and accounts to avoid problems down the road. Get and keep receipts for every purchase you make on behalf of your company, no matter how insignificant it may be. You never know when you’ll need them, whether for yourself or in the event of an audit.
Get a Credit Card for Your Business
Even if you’re going digital, business credit cards are a good option while you attempt to keep your business funds distinct from your personal affairs. This is because you’ll have fewer monthly statements and paperwork to keep track of. While you can always keep track of your receipts, paying with a credit card saves time and makes life easier.
Tax Deductibles Shouldn’t Be Overlooked
While it comes to the Internal Revenue Service, don’t forget to check into tax deductibles and write-offs when purchasing office equipment. Some computers, printers, company vehicles, and business software, for example, maybe tax-deductible. It’s a good idea to have a list of qualifying brands and models that qualify for deductibles before you start shopping for equipment for your business.
Bring in the Professionals
As previously said, there are numerous accounting and bookkeeping software solutions available to business owners, but nothing surpasses the guidance and expertise of a professional accountant who understands the trucking industry. Turn to a professional if you ever feel like you’re in over your head. when it comes to keeping track of your trucking company’s financial health, or if you have a query you can’t seem to find a solution to.
Even if you have no trouble keeping up with your business accounting. It’s a good idea to consult a professional accountant a few times a year for financial guidance and to double-check that you’re doing everything correctly. You don’t want to discover the hard way that your company isn’t performing as well as you had hoped.
When you have the correct tips, software, and experienced assistance, trucking bookkeeping becomes a lot easier. Take care of your company’s financial health to maximize your business’s potential. Best Wishes!
Who is eligible for these tax breaks?
Only owner-operators are eligible for some tax benefits. Others are unique to business drivers. Local drivers, in general, are not eligible for these reductions. You must have a “tax home”—a location where the IRS can contact you—to claim these deductions. This is usually your home address. A solid rule of thumb is that you can’t claim anything. That your employer reimburses you for because you’ve already received the money.