Accounting services for your Trucking Company
Accounting services for your trucking company determine the business’s success since it defines its profitability. Beyond keeping a record of the company’s financial status for the simple fact of complying with the law, it is vital to understand the usefulness of this accounting record for the control and projection of the company in the future. Having organized accounting, in addition to accurately delivering figures to know the profits, costs, and expenses of the business, determines the operation of the trucks so that they can work on the road without problems and provide optimal service.
Every trucker should know how much money they can earn after a month of hard work driving long hours on the highway, but only a few have enough time to organize their company invoices or need to know how to do it.
What payments should be taken into account?
An accounting service for a trucking company should always take into account the payment of:
- Taxes: UCR, IFTA
- Annual company tax: Annual Report or Franchise Tax
- Regulatory permits according to the state where the company works
- Commercial Insurance
- Fee for Dispatcher (if you have one)
- Truck driver food expenses
- Advice for the annual audit of the FMCSA
All invoices must be organized daily to avoid money leaks, often generated due to operational processes in which the respective adjustments are not carried out. For example, during a month, your company’s income has decreased, but the expenses have been the same. If this adjustment is taken into account, this will positively influence the balances at the end of the month. It is difficult for a trucker or his wife to carry out this work on a day-to-day basis, as it tends to be a process that takes time, order, and a lot of attention to detail. Considering that the trucker is driving most of the day and his wife is based on household chores and children, it becomes complex to find the time to do it.
On many occasions, truckers pay their personal and family bills with their company card, which is not recommendable because accounts cross, and it is challenging to have clarity on business earnings.
Is it worth hiring an accounting service?
Hiring an accounting service is the best decision because, in this way, your company can have all the documents in order and up to date without affecting your work. In addition, it is beneficial to carry out these financial reports to know what the future projection of the business is and to be able to make decisions based on truthful information. Another critical point is that when negotiating with investors, partners, or suppliers, these reports are a fundamental basis for all parties to know the company’s current conditions. Thus, the negotiation process can be carried out transparently and successfully.
Recommendations to take care of your earnings
The main recommendation is to separate the costs and expenses of the transport company from the personal costs and expenses. Having two separate accounts works very well since figures are not mixed, and there is greater clarity of the business profits.
Setting a monthly salary also helps take care of the trucking company’s profits. Regardless of whether you are the company owner, it is necessary to establish your monthly salary so that you allocate this money to pay personal bills.
Accounting service for truckers is an excellent solution if you want to organize your business; timely advice can help you grow as a company and have better income.