Trucking accounting goes beyond the simple tasks of bookkeeping and recording daily costs. While these help you get the job done, you’ll find lagging in a lot of crucial areas in the industry.

To up your accounting game, you need precise record-keeping, the right tools to streamline complex processes, and a deep understanding of the ins and outs of the trucking scene.

Luckily for you, we’ve got a guide that covers all the trucking accounting: essential tips and tools so you can elevate your business and stay on top of all your expenses like a pro. So, without further ado, let’s crack on!

Getting Down To The Basics of Trucking Accounting

Before we proceed to give you the essential tips and tools of trucking accounting, we want to take it back to the basics. So, first up, why are we harping on the importance of proper trucking accounting, you ask?

Accurate record-keeping and accounting are important in the trucking industry simply because they help keep you and your business safe.

This daily tracking of income and expenses such as fuel, maintenance, repairs, tolls, and driver wages, not only helps meticulous analysis of financial statements but is also essential for tax reporting and compliance. 

What financial statements? We’re talking about the key ones in the trucking industry, such as income statements, cash flow, and balance sheets. These documents give you a clear insight into how well your business is doing, its financial health, and liquidity so you can make informed decisions. 

Another reason why you need to be in control of your trucking accounting is regulatory compliance. Trucking businesses are subject to specific tax regulations and reporting requirements such as the HVUT or Heavy Vehicle Use Tax, the IFTA fillings, or International Fuel Tax Agreements.

Accurate trucking accounting helps you avoid penalties and make sure everything is running smoothly. 

Colton Lawrence of Trucker CFO emphasizes on how their trucking accounting services helps people gain better understanding of their finances, which includes staying updated on tax liabilities and other regulations.

Essential Accounting Tips for Trucking Business

Now, on to the main event, or at least part of it. Let’s tell you about some essential accounting tips for trucking businesses. 

1.  Using A Consistent Accounting System

Choose one reliable accounting system, cash basis or accrual basis, and stick to it. Implementing one consistent accounting system makes it easier to track your financials, prepare for taxes, and make informed decisions about your trucking business. Switching between multiple can make things difficult.

2.  Track Mileage and Fuel Expenses Accurately

This is where you’ll need to be hawk-eyed, mileage and fuel expenses are two of the largest expenses for trucking companies. Using a system to track these costs accurately and carefully is important. Consider using GPS tracking and fuel cards to automate the process and reduce mistakes.

3.  Regularly Review and Reconcile Accounts

Regular account reviews and reconciliations help owners and operators catch errors early and make sure that your financial statements are accurate. This is crucial for spotting inconsistencies, monitoring cash flow, and maintaining financial stability and health. 

4.  Set Aside Funds for Taxes and Unexpected Costs

Taxes are a significant expense for trucking businesses. So it makes great sense and a business move to set aside funds throughout the year specifically for taxes, to avoid problems in cash flow. Maintaining an emergency fund can also help you manage unexpected expenses, such as vehicle repairs or unexpected maintenance. 

5.  Monitor Cash Flow Closely

Cash flow is the very lifeblood of any business, and trucking is no exception. When you regularly monitor your cash flow, it helps you identify potential issues early on, manage all expenses, and make sure that you have enough liquidity to cover your obligations.

Top Accounting Tools for Trucking Businesses

It’s time to now tell you about some great tools to streamline your trucking accounting tasks and keep your business healthy and up-to-date.

1.  QuickBooks

QuickBooks is one of the most popular accounting software solutions and it offers trucking-specific features like tracking expenses, invoicing, and mileage. QuickBooks has a user-friendly interface and integrates with other tools seamlessly, making it a top choice for trucking businesses.

2.  TruckingOffice

Designed specifically for trucking businesses, this software has features like IFTA reporting, load tracking, and maintenance scheduling. The interface has a comprehensive functionality that makes it a valuable tool for managing your finances and trucking business operations.

3.  ProTransport

ProTransport is another all-in-one transportation business management software that combines accounting, dispatching, and fleet management. It’s particularly beneficial for larger trucking companies that need all-encompassing solutions to manage their business operations.

Some Things To Look Out For…

We’ve given you essential tips and tools for trucking accounting purposes. Now, we’re going to tell you about some red flags you need to watch out for when navigating accounting tasks in trucking businesses. 

• Missing or Inconsistent Records: If your income, expenses, or mileage reports don’t match up, it means there are deeper issues such as untracked expenses, misreported revenue, or even fraud. 
• Unexplained Cash Flow: For trucking businesses, unexpected cash flow issues mean trouble paying for fuel, maintenance, or payroll, all costs crucial to keeping your operations running smoothly.
• Late Payments or Missed Deadlines: Missing tax deadlines, IFTA filings, or payments to vendors can undoubtedly lead to penalties, interest charges, and damage to your business’s reputation.  
• Difficult Reconciling Bank Statements: If it seems tough to reconcile your bank statements with your accounting records, it points to unrecorded transactions, unauthorized withdrawals, or man-made errors in data entry. 

Conclusion

Trucking accounting may appear daunting, but with the right knowledge, tips and tools, you can master it. We hope our guide can help keep your finances in check, stay compliant with regulations, and focus on growing your business, whether you own an entire fleet or are working for a company. 

Jane