Without such training, it’s important to remember which mistakes to avoid and how. IRS classifies semi-trucks as qualified nonpersonal use vehicles which means companies need to use actual costs rather than employing the standard mileage method. Running a trucking business comes with potential hazards and it is often better to form a different type of entity. A limited liability company (LLC) or a corporation are better suited for a transportation business. Using software for accounting can help you manage the different components you need to determine the financial well-being of your company. For smaller or growing companies, it may allow you to operate without needing an in-house accounting department or accounting personnel.
QuickBooks Online: Overall Best When Integrated With RAMA Logistics Software
For example, trucking companies must pay the Heavy Highway Vehicle Use Tax or Form 2290. You’ll also have to pay income taxes, employment taxes and a fuel tax to the International Fuel Tax Association or IFTA. This will give you the chance to try it out before you commit to it, which can make it possible for you to ensure your trucking accounting software is easy to use. Before you choose a trucking evaluating a company’s balance sheet accounting software, get quotes from a couple of different platforms and compare their features, user-friendliness and any hidden fees lurking. These are six of the best accounting software for a trucking company in the industry to make managing your finances easier and more efficient. Along with QuickBooks, transportation management systems (TMS) are a popular alternative for standalone software.
Bookkeeping Software Built for Your Trucker Business
- This focus is intended to make it easier to calculate load values and stay on top of receipts for tax filing.
- In addition to saving time, a trucking accountant can also help you minimize expenses.
- The driver settlements function lets you calculate driver pay by the mile, load percent, or a flat rate per trip.
- North One has designed business banking services for small business owners across America.
TMS helps transportation companies handle all their accounting needs, including invoice reconciliation and other general accounting tasks, in addition to freight billing and auditing. To make things easier, our accounting software now includes double-entry accounting – an industry standard features that helps you keep all of your debits and credits in check. With a complete picture of the financial status of your business you are better able to make informed decisions about your business finances.
“Shoeboxed makes it stupid simple to scan receipts…”
When it comes to taxes, the Trucker CFO Team has the experience you need to help you reduce your tax liability as a trucking entrepreneur and business owner. Collaborating effectively with your accountant is key to establishing a productive partnership. Establish clear communication channels, provide accurate financial data, and set clear expectations for deadlines and output to ensure a productive working relationship. Tracking your income and expenses regularly is essential to stay on top of your business’s performance, identify financial trends, and avoid surprises.
To develop this guide, we carefully examined the features required for the efficient operation of trucking businesses. If necessary and available, we sign up for these platforms and closely study how the features work in real-world scenarios. Experience and expertise are important factors to consider when choosing a trucking accountant. Look for someone closing entries are dated in the journal as of the date they are actually journalized who has experience working with other trucking businesses and who understands the unique financial challenges that the industry faces. Additionally, make sure that they have a good understanding of the software and tools that you use to manage your finances. As a trucking business owner, you know that managing your finances can be a challenging task.
The expert you hire does not have to work full-time but can be on call to help with specialized services and questions, keeping down on the total cost. Remember to work only with those individuals familiar with trucking accounting features and your specific line of work. Generally speaking, bookkeeping for trucking companies involves maintaining the general delivery invoice template ledger with day-to-day transactions within the business. The process is routine and administrative, which does not require critical thinking. Since little training is required for small businesses to perform this function successfully, many truck drivers complete this alone. Trucking is a unique industry, so it has some unique taxes it needs to file.
These tools cater to the unique needs of the trucking industry, offering features like mileage tracking, fuel tax calculations, and load management. A trucking accountant can help you save time, minimize expenses, and provide expert financial advice. They can take care of complex financial tasks such as bookkeeping, tax compliance, payroll management, and budgeting, allowing you to focus on growing your business. The software can also generate profit and loss reports, offering insights into the company’s fiscal performance.
Firstly, it’s essential to distinguish between bookkeeping and accounting, two terms often used interchangeably but serving distinct purposes. Bookkeeping for truckers involves the daily recording of transactions, such as fuel expenses, tolls, and maintenance costs. It’s the foundation of financial data management, ensuring that every penny is tracked. Companies can use trucking accounting software to track mileage, generate invoices, do payroll, pay expenses, generate profit reports and so much more.
Make accounting painless with our cloud-based platform that lets you invoice clients and create detailed reports quickly and easily. Tailwind TMS can be pricey for very small trucking company software, but it has a lot to offer mid-size and larger companies. For instance, Tailwind’s Unlimited package enables tracking an unlimited number of shipments per month. It also is capable of managing multiple business branches under the same umbrella. Because it was built with trucking in mind, TruckingOffice offers expense reports for scales, tolls, and maintenance. Optional extras include premium routing software that can calculate mileage and optimal routing.
It also aced pricing because of its free plan for trucking companies that make less than $50,000 in annual revenue. It excelled in customer support, but we deducted a few points because its network of Zoho Advisors is not that extensive, especially when compared to QuickBooks Online’s network. Tailwind TMS aced our trucking category and achieved slightly above-average scores for the other categories.