The world of trucking is fast-paced. There are tons of miles to be covered and many deliveries to be made. So, maintaining accurate and organized records is essential for success.
Bookkeeping is a crucial part of any business, and of course, for truckers. Keeping track of company records helps to manage finances properly, comply with tax regulations, and make wiser, better-informed decisions within their business.
Today, we’ll explore 12 top tips for truckers to keep clean company records. our guide will help you with advice and tips to ensure your financial records are not just correctly recorded but effectively organized, too.
12 Bookkeeping Tips for Truckers to Keep Clean Company Records
Keeping clean and accurate company records is vital for truckers to manage their finances effectively, comply with tax regulations, and make the best business decisions.
Here are 12 helpful bookkeeping tips for truckers to keep clean company records.
Separate Personal and Business Finances
Keep your personal and business finances separate from each other. Open a separate bank account and opt for a separate credit card for your trucking business. This will make it easier for you to track business expenses and income effectively without mixing everything up and creating unnecessary confusion. When you operate your business from a separate bank account, you can access information easily. Also, you get the chance to be prepared for those necessary audits and inquiries.
Another crucial aspect of bookkeeping, every time you make a purchase related to your business, keep the receipt. This could include fuel, maintenance, repairs, meals on the road, and any other expenses. You can save physical receipts, or you can also use digital tools to scan them electronically.
Use Accounting Software
In this electronically-automated world, you can’t go wrong with using accounting softwares to make your bookkeeping easy. You can use softwares like QuickBooks, Xero, or FreshBooks. These tools will simplify bookkeeping tasks and help you maintain organized records. A simple spreadsheet on Microsoft Excel can also do the job and help you keep track of your expenses.
Hire An Outside Bookkeeping Firm
You can use the services of accountants or bookkeeping firms who specialize in transportation or trucking businesses. A Certified Public Accountant (CPA) can also help you simplify your recordkeeping; just ask Colton Lawrence at Trucker CFO. He has dedicated his expertise and experience as a CPA to build a reliable firm helping thousands of truckers reduce the stress of record and bookkeeping. They can provide expertise, make sure you’re complying with tax laws, and free up your time to focus on driving and other activities.
Accurate mileage records are crucial for tax deductions. Maintain a mileage logbook to track your business-related travel. Include details like date, destination, purpose, and starting and ending readings on the odometer.
Record Transactions Promptly
Make it a habit to record your transactions as soon as possible. Waiting too long can cause you to forget and lead to errors and missed payments on your records. That’s why having a professional accountant or using an accounting firm, in this case, is handy, as they’re always on top of your transactions, recording them right away and keeping track of all other relevant information.
Stay Informed About Tax Deductions
Keep yourself informed about tax deductions specific to the trucking industry. Common deductions include per diem expenses, equipment deterioration, and truck maintenance costs.
Stay Prepared For Taxes
As we know, tax laws change, so it’s smart to save a portion of your income just for tax purposes. Keep this in a separate account to ensure you’ve got it when tax season rolls around the corner.
Regularly Review Financial Reports
Review your financial statements and reports, like profit and loss statements and balance sheets, on a regular basis. This will help you monitor your business’s financial condition and health, and it will help you to make smart decisions.
Reconcile your bank and credit card statements with your bookkeeping records on a monthly basis. This makes sure that all transactions are accounted for and helps detect any errors or discrepancies.
Backup All Data
Regularly back up all financial transactions and data in written and electronic forms to prevent loss in any area. Cloud-based accounting software and professional bookkeepers are perfect for this purpose.
While electronic and digital recordkeeping is absolutely wonderful, nothing beats having your good-old notebook with you on your travels. It is scientific proof that writing something down helps retain the information better than typing. That’s not to say that just typing and inputting on a device wouldn’t help you recall, but sometimes the old ways work best!
And there you have it! A complete guide with some very important tips on bookkeeping for all you hard-working truckers out there! We know that in the midst of your hectic schedule and meeting all your responsibilities, record keeping can be difficult to maintain. That’s why we recommend using bookkeeping firms of CPAs to make it easier for you.
Also, if you love doing it yourself, accounting softwares and prompt records are definitely the way to go for you! Stay safe out there, and take it easy. Happy trucking!