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Simplify Your Financial Management With Our Bookkeeping For Truck Drivers

Trucking is a really unique business. Beyond the daily tasks of running your business, you must also see that your financial management is in order. And, unless you have a background in finance, trucking bookkeeping can be complex and intimidating.

But you are not alone. If you are like the majority of people, bookkeeping is difficult. Even though you can complete many of these activities manually, using the support of professional accounting services for your bookkeeping needs can help you save a lot of time and alleviate tension.

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Bookkeeping provides information about your company’s performance and lets you keep your financial statements organised. Keeping accurate records while on the road can be difficult for you as a truck driver. For this reason, it’s beneficial to employ a bookkeeping service like Pearl Lemon Accountants.

We specifically work with truck drivers to manage their books. So whether you are into fleet management, an owner-operator, an independent contractor, or a trucking industry entrepreneur, we can help you make things easier. Our experts use customised strategies and solutions to manage your money effectively and help you increase your profits. 

When you hire our accounting firm, you can rest and focus on growing your trucking business while knowing that our tax planning professionals will take care of your finances and taxes with your best interest in mind.

Ready to get started with your truck driving bookkeeping and accountancy? Contact Us Today.

Basic Bookkeeping Tips Every Trucker Should Leverage

Save every receipt, no matter how minor the charge appears to be.

You want to be able to write off as many legal expenses as you can. You can keep a receipt collection envelope in your vehicle or utilise the e-receipt-specific folders on your computer or in the cloud. Use the folders to store your correct quarterly tax estimations and monthly profit-and-loss statements.

You can scan your receipts for any expensive products you buy but save the original physical copies for your records.

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Create separate checking accounts for your business

If you are the only proprietor of the business, open a separate personal account for your funds. This will save you any extra expenses associated with business accounts. Additionally, this will make it simple to get the data you need during an audit.

Use a separate credit card for business costs.

Find credit cards that have a low-interest rate, annual fees, and, ideally, generous reward plans by doing some research. To prevent taking on more business debt, make sure to pay off your balance completely each month. Recordkeeping is simple when using a separate credit card for operating expenses because you can frequently identify charges (gas, food, maintenance, etc.).

Maintain a copy of each logbook.

Your logbook or records are your strongest evidence that you are eligible for per diem payments (primarily composed of meal costs). Make sure you can save and access your history if you rely only on your electronic logging device (ELD) for truck driver bookkeeping. This is already required knowledge for inspections.

Keep a notebook in your truck

You can record any expenses for which you cannot receive a receipt in your notebook, on a document on your computer, or on your smartphone, in addition to your receipt envelope. This includes situations like the need to track mileage when using your personal vehicle for work purposes or to wash your truck at a coin-operated facility. 

Your business services provider or tax accountant will need a monthly record in addition to any other receipts. To comply with IRS requirements, you must note the date, place, sum, and justification for each expense!

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Keep all of your records

You have three years from the day you submitted your tax return to maintain all the documents you needed to compile it. Additionally:

  • you must maintain copies of all quarterly IRS estimated tax payments, 
  • monthly profit and loss reports, 
  • insurance records, 
  • maintenance logs, 
  • warranty information (which must be accessible right away to keep your truck on the road), 
  • registration data, 
  • settlement and bank statements, 
  • credit card statements for your trucking company, and cancelled checks.

Make use of an accounting system

Trucking bookkeeping will be simpler if you employ standardised accounting procedures and systems. The majority of trucking companies use either a cash-based or accrual-based accounting technique. Cash-based accounting counts any payments you receive when they are made-paying bills inclusive. The simplest system for making sure you remember everything is this one.

An accrual system allows you to record revenue when it is earned (rather than when it is paid) and bills when they are received (before they are paid). Then, to ensure the accounts are in sync, you reconcile them each month.

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Update your books daily.

You will better understand how your company is going and be able to manage your cash flow more effectively if you update your books every day. Entering your expenses every day as you incur them is the simplest method. You won’t have to rely on your memory this way. Additionally, you will still have the receipt in your files if you lose one.

Analyse your finances frequently

Sending, paying, and receiving payments via electronic means is easier and quicker. You no longer need to await the physical cashing of a cheque. To be sure you are receiving the money you are due, keep an eye on the transactions occurring in and out of your bank account.

Make sure the charges on your bank accounts are genuine, especially if you’re not the only person with access to the account. If there is a disparity, you want to find it right away before it causes more damage to your trucking company.

Conduct a month-end close.

A recommended practice for truckers’ bookkeeping is to ensure that you close out each month by ensuring that you have all of your documentation, that it matches your records, and that you can accurately tie revenue and costs to the balance at the end of the month.

Make sure your books are audit-proof.

States also conduct audits. You want to avoid that occurring to you, but you also want assurances that if it does, you’ve done everything correctly. Truckers should use separate accounts for each to make it simpler to track and establish a distinct divide between personal and business spending. It’s excellent if you manage to avoid an audit. Unless otherwise, you’ll be glad you took the time to keep your records in order.

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Keep Your Business On The Road With Our Bookkeeping Services

Proper bookkeeping will assist you in making sound financial decisions that will benefit you in the long run. Our goal at Pearl Lemon Accountants is to assist truck drivers in operating a more successful business so you can spend less time worrying about the books and taxes and more time doing things you enjoy.

We provide various services, including bookkeeping, accounting, and tax preparation. We know how crucial and influential these are to a business’s success.

If you’d like to learn more about our tax strategies or want to get started today, give us a call.

FAQs

As a proprietor of a trucking company, you must maintain records of all your expenditures and the supporting paperwork, such as invoices and account statements. Each expense’s amount, date, location, and intended use for business should be supported by documentation.

Keep all the paperwork you need to meet IRS and Department of Transportation regulations as well. For instance, that includes information from your ELD, invoices, bills of lading, payroll records, and receipts for tax payments.

Although you can manually record transportation expenses, connecting your business accounts to trucking accounting software is considerably simpler. It can automatically track and group your costs, but you might need to keep some additional records when tax time comes.

Yes! You can do basic bookkeeping, but it would be better to outsource a professional tax service. If you are just getting started, single-entry bookkeeping will work for you. It’s quick, easy, and suitable even for commercial truckers. 

Double-entry accounting is more complex, reliable, and better suited for more established truck companies. But, if you need advice and want to cut-off time doing your books, hire our bookkeeping service at Pearl Lemon Accountants. 

When you allow us to keep track of your finances, you give yourself more time to do your work and please more clients. It's a win-win situation for everyone. Aside from that, you'll also gain financial stability because your assets and liabilities are managed well enough not to cause any trouble for you in the future.

So let our experts work for you, and you won't regret it even a bit.

Book a call today to get started.