Accounting for Owner-Operator Truck Drivers

Having a separate account will also give you easy access to necessary information if you are audited. Scanned images of receipts are acceptable, but keep original paper copies for warranty purposes for any big-ticket items you purchase. Other accounting features also help to make it one of the best TMS available when it comes to trucking bookkeeping.

However, some companies use other solutions for those tasks and find Quickbooks meets their accounting needs. Trucking companies may take very different approaches to bookkeeping depending on their size, time in business, and plans to expand. At its most basic, bookkeeping can be tracked manually with ledger books or spreadsheets. Instead, most owner operators opt for scaled-down software to streamline their bookkeeping.

Trucking Dispatcher Training

The goal of factoring is to get your invoices paid as quickly as possible, but drivers need to be wary if the factoring company is taking too much off the top. The DAT load board also allows you to specify your trucking equipment type, with filters to narrow down your search for specialty loads. Whether you drive a hot shot trailer, a van, a reefer, or any other type of specialty trailers or equipment, you can easily identify your criteria and search for relevant postings near you. Additionally, unlimited search and post means DAT never charges hidden fees for heavy usage of search features. More advanced trucking tools are not available with FreshBooks, like trucking routing features, dispatch tools and freight calculators. TruckBytes is a free tool for mainly managing your truckloads, deliveries, distance tracking and more.

Tools

To better explain this process, we will define the following words in laymen’s terms; revenue, expenses, profits, and net income. While Oracle NetSuite may not be the best trucking accounting system, it does earn its status as some of the best accounting software which can be used by trucking businesses. As a trucking company payroll software, Q7 gets you detailed employee records, tax reporting data, and information about hours, salaries, miles, revenue percentages and flat payments. While Quickbooks can be used for trucking companies, some trucking-specific features are missing such as cost-per-mile calculations and IFTA reporting.

Trucking Bookkeeping for Owner-Operators – Tips for Solo Drivers

Rose Rocket uses a good deal of automation to help your team save time and reduce errors with things like manual data entry. Simplified order management module for your customers to use, as well as an optimal trucking rate calculator for offering the most competitive prices. Rigbooks can be billed on a per-mile basis, and this kind of mileage tracking is exactly what’s lacking from systems like Quickbooks.

• When you visit your load board to find new freight, you need access to as many load postings as possible.
• Opting for any accounting software is better than tracking your finances on paper.
• Trucking companies are often a part of many transactions and deals every day, and it is hard to accurately invoice and record them all.
• Owner operators and small fleet owners may have a hard time justifying the higher cost of a full TMS if they are unlikely to use the extra features.

From managing day-to-day expenses to handling payroll and tax documentation, the right owner-operator accounting software offers a one-stop solution for trucking financial management. Track your mileage, income, expenses, and more to get a better snapshot of your business’s health. It’s much more efficient than tracking everything in a spreadsheet or, worse, on paper.

• Trucking accounting software helps automate tasks a bookkeeper or accountant would normally handle such as invoicing, expense and mileage tracking, payroll, tax compliance, and financial reporting.
• But if you need something more specialized, payroll software can handle mileage-based compensation, complex pay structures, and more.
• Cash flow can be challenging for owner-operators, especially when waiting for clients to pay invoices.

How do trucking companies do bookkeeping?

Be sure to also look for a bookkeeping partner who understands and evaluates your business’s specific needs and can provide services that align with your business. Simply knowing about the basic owner operator bookkeeping concepts affects the success of your business. By knowing the fundamentals of bookkeeping, you’ll have a solid foundation in these financial principles and have the tools to take control of your finances. Spreadsheets are convenient, but they still take quite a bit of time to build and maintain. They also don’t come owner operator bookkeeping with any of the fancy bells and whistles that bookkeeping apps and software do.

TruckingOffice offers standard bookkeeping features and allows for invoicing on variable fees, such as flat, per ton, per mile, or by weight. IFTA tax reports are also generated automatically, with options to choose which trucks to include in the report. These include focused tools for freight haulers, freight brokers, and oilfield trucking. Cash flow can be challenging for owner-operators, especially when waiting for clients to pay invoices. Invoice factoring allows owner-operators to sell outstanding invoices to a factoring company in exchange for immediate cash.

This cloud-based truck management software allows you to track fuel mileage, expenses, trips, and orders. While it’s not as well-rounded as the other options on this list, its most popular feature can help improve your bottom line. It also integrates seamlessly with TruckingOffice, a trucking management system that helps you manage your dispatches and business expenses, as well as prepare your IFTA reports. The practice of recording each financial transaction a company entity does from its inception to its closure is known as bookkeeping.

Small Business Bookkeeping Tips to Help Owners Save Time

That way, all of your bills can be accessed through any computer or mobile device, no matter where you are in the world. Turn your unpaid invoices into working capital so you can keep growing your trucking business. Like QuickBooks, FreshBooks is an affordable and easy-to-use accounting solution for businesses in all industries. You might have your trucking business plan sorted out, but you need more than a plan to run a successful company. As an owner-operator, you’re responsible for paying estimated quarterly taxes. Set aside a portion of your income (typically 25-30%) to cover federal and state taxes.

That way, you won’t have any mix-ups between personal and business expenses. The last thing you want is to end up paying a business expense out of your own pocket. Shoeboxed is an expense & receipt tracking app that helps you get reimbursed quickly, maximize tax deductions, and reduce the hassle of doing accounting. Accounting is the process of recording, measuring, and communicating information about the financial transactions taking place in a business.

We found out that, the free package will allow you to create invoices, enter expenses, verify payments, manage customers, track invoices, and produce helpful reports. The free package has enough trucking bookkeeping features to simplify your bookkeeping and accounting. Our reviewers found out that ProTransport is compatible with trucking companies of all sizes. It offers bookkeeping services like invoice creation, accounts receivable, accounts payable, profit and loss, and unlimited document storage. However, keeping a running tab of your fuel expenses allows you to calculate your trucking companies cost per mile, which is explained in more detail here. Knowing your cost per mile is critical for choosing the right loads that are going to provide income for your business.

One of your most powerful trucking bookkeeping resources comes in the form of a tiny slip of paper—receipts! Without them, you run the risk of losing hundreds, even thousands, in taxes. If you’re experienced in bookkeeping and are managing a small or medium-sized trucking company, consider Q7. You can use this accounting information to gauge your company’s performance and make decisions about your budget, workflow, investments, and potential growth. But if you need something more specialized, payroll software can handle mileage-based compensation, complex pay structures, and more.