It serves as a digital hub and tax center from which you can manage all of your paperwork and filing responsibilities. One of the primary problems with managing your small business accounting is the sheer amount of time and energy it takes. Running a trucking company alone is enough work to keep you busy, and trying to do both is a lot to handle at once. Meanwhile, the HVUT is an annual fee that truckers must pay if they drive a vehicle that’s at least 55,000 pounds for more than 5,000 miles on public highways. It equals $100 plus $22 for every 1,000 pounds over 55,000 pounds up to $550 and 75,000 pounds.
He now writes articles on personal and corporate finance, accounting and tax matters, and entrepreneurship. That’s another reason paying for tax services is essential for the transportation business. In addition, ignoring your accounting for more than a couple of months means you’ll likely miss one or more tax due dates. If you fail to make estimated tax payments, submit your IFTA reports, or file Form 2290 on time, you’ll face penalties and interest. For example, transportation management software, also known simply as trucking software, is a must-have for owner-operators.
Common Mistakes
Apply for financing, track your business cashflow, and more with a single lendio account. If you owed taxes in the previous year but not the current one, you must file Form 2290 to report the change and suspend your responsibilities. truckers bookkeeping To comply with IFTA, you must report your trips and fuel purchases quarterly. The IFTA office in your home state will allocate your payments to the proper jurisdictions and determine whether you owe more or deserve a refund.
- It equals $100 plus $22 for every 1,000 pounds over 55,000 pounds up to $550 and 75,000 pounds.
- One of the most common mistakes small business owners make is putting their accounting responsibilities on the backburner for too long.
- He has been an auditor of international companies and a tax strategist for real estate investors.
- It ensures your funds go to the areas where you used your fuel instead of the ones where you purchased it.
The easiest way is to open up a new checking account and credit card and reserve them for business use only. For example, most small business owners can only take 50% of meal expenses, but truckers are allowed to take 80% of either their actual costs or per diem allowances. As a result, you probably shouldn’t try to manage your trucking business’s accounting function without help. It may be worth handling some lower-level aspects, but you’re better off outsourcing the more complex and time-consuming parts. The ever-expanding capabilities of modern software have made many aspects of business ownership significantly easier. You must be strategic about which tools you invest in to avoid wasting resources, but it’s worth utilizing in many areas.
Bookkeeping Vs. Accounting for Trucking
It’s a routine, administrative process that requires relatively little critical thinking. Fortunately, you don’t need to hire an accountant for your business full-time. Outsourced accounting lets you select only the specialized accounting services you need, keeping your costs down.
- You can document trucking costs manually, but connecting your business accounts to accounting software is much easier.
- To comply with IFTA, you must report your trips and fuel purchases quarterly.
- IFTA compliance is one of the additional accounting responsibilities unique to trucking companies.
- Keep records of each purchase’s amount, date, location, and business purpose.
- For example, if you place your truck into service in July, the due date is August 31.