What Are Truckers’ Bookkeeping Services?

Starting a trucking company can offer many benefits to the owner. It’s a chance to be your own boss on your terms and still make a living while traveling the country. And while there are many perks to this job, running a successful trucking company takes a wide range of different skills. 

One key aspect of running a trucking company is ensuring that the business finances are organized and maintained. While this may sound simple, it can be a complex process that may require the following skills:

• Understanding accounting systems and standards to ensure you are compliant.
• Understanding how to prepare financial statements as an independent contractor.
• Knowing how to file your taxes with the appropriate tax deductions. 
• Developing financial plans to ensure you have enough cash flow at all times. 

Completing all these tasks can be daunting, especially for truck drivers unfamiliar with accounting practices. However, trucker bookkeeping services can benefit many owner-operators by completing the following tasks:

Selecting the right accounting system

Owner-operators must have a comprehensive accounting system. A failure to implement a system can result in serious financial problems down the road. Most trucking businesses use either a cash basis accounting system or accrual accounting. With a cash-based system, you count revenue and expenses as you receive or pay them. 

Accrual accounting allows a company to record revenue before receiving payment and record expenses as they incur. Both methods have benefits and drawbacks, but working with professional bookkeeping services can ensure you select the correct accounting method for your business.  

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Maintaining your books

As the name implies, bookkeeping services can maintain your financial ledgers, which are usually tracked with trucking management software or accounting software now. These tools can manage various financial documents, including profit and loss statements, tax estimates, profit plans, budget resources, and expense ledgers. Keeping these financial records updated is critical in telling you how your business is doing at any given time. 

Tracking your funds

With business credit cards readily available, it can be easy to make payments or purchase necessities without thinking about your budget . But then, at the end of the month, you may be surprised by a high statement. 

Bookkeeping for truckers ensures that you can get an update concerning payments at any time, ensuring that you always have accurate information available to help you make smart business decisions. 

Handing tax issues

Taxes can be complicated in any industry, especially trucking. And if you don’t consult with a professional, you may miss out on many tax deductions available for trucking companies. 

Alternatively, failing to pay the required taxes on income throughout the year can leave you with a huge tax bill when you file. You can avoid both of these scenarios by working with trucking bookkeeping services, which can ensure that you pay the correct amount of taxes - nothing more and nothing less.

Reducing your risk of an audit

Since bookkeeping and filing taxes for the trucking industry can be so complex, it’s no surprise that audits are a significant risk. The IRS and state fuel tax issues can trigger audits. Trucking bookkeeping services can provide guidance that reduces your risk of an audit, such as ensuring you have separate checking accounts for personal and business expenses and that you save and file receipts for all business purchases. That way, if there are any questions about your company’s finances, you can quickly provide the supporting documentation. 

Avoid disputes with your clients

Having a trucking bookkeeping service consistently updating your records can help you avoid issues with your clients. When you have a clear record of the work you have done, the miles you have driven, and any expenses you have incurred, it is easier to resolve any disputes that may arise about payment or other issues. 

Ensuring your financial information is secure

While it may be tempting to think that cyber criminals only target enterprise-level companies, the reality is that cybercrime targeting small businesses is far more prevalent than most people realize. Nearly half (43%) of cyber attacks target small businesses. And trucking companies are a prime target since criminals may assume their security measures are more relaxed than other companies. 

However, when working with a trucking bookkeeping service, they often have security measures already in place to protect sensitive financial information. This benefit can save you from a costly attack that could jeopardize your company’s future.

Providing financial data and projections that help you grow your business

To keep your business successful, you must consistently make smart choices, which is only possible with accurate financial data. 

Bookkeeping services often provide professional business advice that will put you in a better financial position. They can also help you identify ways to increase efficiency, productivity, and revenue. This expert advice can help you stay ahead of your competitors and continue to grow your business. 

Freeing up your time

Wading through federal regulations and trying to understand complex financial documents can waste your work week and leave you with less time to devote to driving and other aspects of running the business. Working with a bookkeeping service can take this burden off of you and ensure you can focus on the activities bringing in revenue.

These benefits make a compelling argument for working with trucking bookkeeping services. And in many instances, it is cost-effective to do so since you can spend more time driving, which brings in revenue for your company.

You can also experience greater peace of mind in knowing that your finances are in order and you have an accurate view of where your company is currently in relation to your business development goals. 

In addition, you also know that someone is available for you to consult if you have any financial questions. These companies can help you streamline your financial processes and secure a better future for your company.  

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