Ryan Smith

Quick Guide to Accounting Service for Trucking

Accounting services for truckers can take much time and can be difficult. Many truckers use accounting services to help them with their business expenses.

A trucker’s accounting services can keep track of much information while on the road, like how many miles they drive, how much fuel they use, where their cargo is, and how much they are paid.

Keeping your finances in order cannot be accessible when you are on the road for extended periods. But there are accounting services that can help.

There are many benefits of using truckers’ accounting services specifically designed for truckers.

A Simple Guide to Do Accounting for Trucking

You will need to know the basics of trucking accounting, even if you use a Certified Public Accountant (CPA) for most of your transportation accounting.

As a truck driver who works for himself, here is a general way to set up a trucking accounting system.

● Open Separate Accounts for Your Business

Every business owner should separate their business activities from their personal ones. This makes accounting easier. It is always better to get a new checking account and credit card that you only use for business.

Many business owners find that when they mix their personal and business funds, it is hard to tell which transactions belong to which category.

● Pick a Legal Structure for Your Business

Small business owners must also decide what legal structure they want to use. Sole proprietors are a default structure, so owner-operators who start a business without filling out paperwork will fall into this category.

Working in the trucking industry involves many risks. It is often better to take the time to form a limited liability company (LLC) or a corporation. Before you make that choice, you should talk to a CPA firm.

● Pick an Accounting Method

Truckers must choose between cash and accrual bases, the two main ways of keeping track of money. They significantly affect your tax return, so you might want to talk to an accountant before choosing one.

With cash, you count your income when you get paid and deduct your expenses when you pay them. Many small businesses like this method because it is easy to use.

● Keep Track of Your Expenses and Documents

You must be careful about keeping records if you are in the trucking business as they need to keep track of their costs.

Truck drivers can have many different costs, most of which may be tax-deductible. For example, when you are on long trips away from home, you should keep careful track of all the following costs:

  • Fuel
  • Meals
  • Lodging
  • Auto Washing
  • Parking fees and tolls
  • Vehicle maintenance

The IRS considers semi-trucks to be qualified non-personal use vehicles. To deduct the cost of your vehicle, you cannot use the standard mileage method. Instead, it would be best if you used the actual price of your vehicle. Keep track of the amount, date, place, and business reason for each purchase.

You should not only keep track of your expenses but also have receipts, trip logs, and account statements to show that they are real. Keep at least three years of account services worth these on hand. That is how long the IRS usually must check up on you.

● Keep up With Your Tax Responsibilities

All business owners, including truck drivers, must pay estimated taxes on their income and self-employment every three months. This is to cover their income and self-employment taxes. You will have to pay fines and interest if you do not meet your federal and state obligations.

Trucks often must pay more taxes depending on how long their trips are and how big their trucks are. These include the Heavy Vehicle Use Tax (HVUT) and the International Fuel Tax Agreement (IFTA).

The International Fuel Tax Agreement (IFTA) is a way to redistribute truck drivers’ fuel taxes in the 48 states and the 10 Canadian provinces. It ensures that your money goes to where you used your fuel, not where you bought it.

Conclusion

Accounting services for truckers can help you keep track of your money while you are traveling. When it is time to pay your taxes, you will not have to worry about surprises using these services.

Best Accounting Practices for Logistics and Transportation Companies

Transportation and logistics companies play an important part in everyday business by transporting goods from one location to another. With the emergence of global e-commerce, the role of the transportation and logistics industries has grown even more.

The uncertainty in operational expenses is one of the key reasons contributing to this. Furthermore, fluctuations in the oil price and transportation rates might contribute to losses if not controlled appropriately.

Airlines, cruise lines, railways, and shipping/trucking companies, for example, face a number of accounting and operational problems that might have an influence on their net earnings. As a result, good accounting standards must be followed to manage their cash flow and liquidity.

Best Accounting Practices to follow

Let’s take a brief look at the best practices for handling finance and accounting in logistics.

1. Regular Profitability Analysis

There are several variable expenses in the logistics industry that fluctuate quite often and can result in significant losses for the company. Businesses operating in the logistics and transportation industry must conduct regular profitability analyses.

To calculate actual profits, it is necessary to closely monitor all of the variable expenses. Because these expenses are subject to frequent fluctuations, that will affect the profitability of the business.

2. Use Updated Accounting Software

Many businesses continue to rely on outdated logistics accounting software that is not capable of meeting the demands of modern businesses.

Using updated logistics accounting software can help you in producing data that is extremely precise and error-free, as well as reducing numerous manual interventions and automate many accounting-related operations that demand precision and accuracy.

3. Financial Forecasting and Budgeting

Financial forecasting and budgeting are critical while building a sustainable business. Financial forecasting is the practice of anticipating a company’s performance in the near and distant future. It considers several factors that may have an influence on a company’s overall success.

4. Produce Monthly Financials

Transportation and logistics firms should publish reports monthly to stay financially cautious. This includes creating cash flow and income statements as well as financial predictions. It is significant since many variable expenses are linked with logistical operations, such as shipping charges, oil prices, and so on.

5. Follow the Local Legislation

Transportation and logistics companies must always follow the appropriate and applicable local regulations. It is important to be aware of and follow local rules and guidelines established by authorities.

This can also assist companies in avoiding legal or financial consequences. Seeking legal guidance is also necessary if the guidelines conflict.

Conclusion

These are some of the important guidelines that businesses in the logistics and transportation sectors must follow. Because there are so many fluctuating variable expenses, it is even more critical for these companies to keep on top of their accounting game. Using reliable cloud-based accounting software may transform logistics businesses.

Benefits of Outsourcing Bookkeeping Service

Whether your business is small, medium, or large, and regardless of the number of employees or the nature, efficient and correct bookkeeping can make the difference between the success or failure of your business. Properly maintained bookkeeping ensures that records are always up to date and provides exact data, which can help understand the supply and demand for products or services you provide.

Bookkeeping can be performed internally or outsourced. In either case, it must be placed in the hands of professionals whose accounting ability will ensure that the company’s goals are met. Proper bookkeeping not only helps in keeping exact records but is also an essential factor in the growth of the business as it helps in meeting and exceeding the business aims and goals.

Beyond the obvious benefits, what are the other benefits to businesses of professional bookkeeping? Here are the top five reasons why it makes a difference for any business:

1. You will be completely aware of your earnings and outgoing costs. You are not required to make an educated guess as to how much money was made and spent. It will enable you to make far better choices when creating a future business strategy.

2. A professional bookkeeping service can even help you recover debts from unrecorded or forgotten sources so you can get back long-earned money!

3. When you outsource your bookkeeping, your costs will be cheaper, and you will be more cost-effective. Consider how much cash you will save!

4. A bookkeeper with ability in your business can give you expert advice and information that will be useful as you plan for the future. The direction of an expert should not be ignored!

5. When you outsource your requirements to a professional bookkeeping service, you can be sure that you will never fall behind with financial deadlines, whether it is invoices or accounts receivable reports. This means that revenue is received on time and streamlined, resulting in a much healthier financial position for the business.

TranspoCFO has helped turn around the fortunes of many companies and has helped over 50 + trucking companies keep their reputations. With a team of professionals

supported by the best technology and tools, you can be sure that your financial reports and records are always in the best hands with TranspoCFO!

Benefits of Outsourced CFO Services

All businesses have unique financial requirements, and financial reporting can sometimes be stressful for smaller companies. It is one of the reasons you should consider using outsourced CFO services. Every business owner must have confidence in their company’s CFO to ensure their business’s growth and keep the balance sheet healthy.

Many businesses outsource their accounting operations to get the best value and quality from their CFO, which is understandable and a great practice. Below are some key benefits of outsourcing CFO services versus hiring a full-time employee in your office.

Saves money:

Hiring someone permanently and paying them a regular salary is always more expensive than using outsourced CFO services. So, if you want to cut costs without sacrificing quality, this is one area where you can do it.

Experience:

When you opt for an outsourced CFO service, the people who do this crucial financial reporting work will be people who have been doing it for a long time. They usually have extensive CFO backgrounds, which can help your company overall. The more diverse their experience, the better it is for your company. They will have better insight into the needs of your finances and how to manage whatever situation you throw at them.

Save time:

Accounting can take up a lot of office time for your business. When you outsource this problem, you have fewer things to worry about in the office, offering your team more time to focus on things that matter to your business.

Hassle-free tax sessions:

When settling taxes for the business, you need to get all the accounts, receipts, and anything else important together. This can be messy, and if you are not careful, it will quickly become confusing and disorganized. With a reliable outsourced CFO service, you can ensure that your accounting is kept up to date throughout the year, so there is not as much panic and chaos when tax time finally arrives.

Teamwork:

When you hire one person as CFO, you get one person’s skills, knowledge, and experience. However, if you choose to outsource, a team of people will take part in the work and bring different perspectives and viewpoints, which is always a benefit.

If you need an innovative approach to your finances and are looking for a CFO. In that case, you should definitely consider an outsourced CFO service from TranspoCFO for all the reasons mentioned above. Contact us today for detailed information!

7 Bookkeeping Tips for Truckers

Bookkeeping services for truckers help in keeping accurate records. Bookkeeping is an essential part of any trucking business. The bookkeeping service will help you stay organized and ensure your finances are in order.

Bookkeeping Tips for Truckers

As a trucker, you know that keeping track of your finances is essential. Here are seven bookkeeping tips to help you stay on top of your business’s finances.

1. Open a separate account for your business

2. Save your receipts regularly

3. Maintain records every day

4. Save all your records

5. Use bookkeeping software made for trucking

6. Know your cost per mile

7. Use online banking and credit cards to make tracking finances easier.

● Open a Separate Account for Your Business

When it is time to look at your business’s income and expenses, you must go through each transaction. And it will not be easy to remember which are personal and which are business-related. The IRS might even check up on you if you act like this.

Opening a separate account for your trucking business will help you save yourself from trouble. You do not need the most expensive business account as a sole proprietor. You can keep your business separate by opening a new personal account.

● Save Your Receipts Regularly

Most of the time, you do not think to save your receipt before you throw it away. But many costs come with driving a truck, and you want to be able to deduct as many of those costs as possible when you file your taxes. So, you can pay your taxes with all tax breaks considered.

● Maintain records every day

Keeping good records is easier if you spend a few minutes updating everything daily. Try to keep your records up to date every week.

Knowing how much money you have can make better decisions about how to spend it. It also helps you keep your transportation business running well and grow it.

● Save All Your Records

Keeping your logbooks is an easy way to keep track of your books since you already must do it.

Your logbooks are essential to any trip because they are the best way to prove how much you spent on per diem. Whether you use an ELD (an electronic logging device) or a paper logbook, you can look at the past to see how much you spent.

● Use Bookkeeping Software Made for Trucking

Using bookkeeping software for the trucking industry is one of the best ways to keep track of your books without having to double as an accountant.

Bookkeeping software can be used to:

  • Keep track of your spending
  • Make financial reports
  • Send out bills
  • Keep an eye on cash flow analysis
  • Handle payroll
  • Make it easier to do your taxes

Using bookkeeping software for your trucking business can save you much time and make it easier to come up with financial plans to help your business grow.

● Know Your Cost Per Mile

The most important thing for commercial truckers is the average cost per mile which is helpful in many ways:

  • It helps transportation companies set the correct prices for their services based on the current rates.
  • It helps your business make more money.
  • It enables you to determine where high costs are to decide where to save money.
  • When you plan for maintenance and repairs, you can avoid money problems before they happen.

It is easy to figure out how much you spend per mile.

Just add up all your fixed costs for the month and all your variable costs. Then divide that number by the miles you drive in a month. It is always recommended that you figure out this number again every six months.

● Minimize Your Day’s Sales Outstanding (DSO)

DSO stands for “days sales outstanding,” which measures how long it takes for your sales to turn into cash.

The faster money gets to your bank account, the lower your DSO. There is also a DSO inside and outside the company. External means how long it takes for your customers to pay you after they get an invoice.

This could be hurt by things like how happy your customers are or how often they pay you.

Internal DSO is the time taken for your invoice to be sent after you finish a shipment. For example, if it takes an extra day to use a Word template to make an invoice after delivering a load, you have increased your DSO.

Using a trucking bookkeeping service that can streamline your invoicing is an easy way to fix a problem like this.

Conclusion

Bookkeeping is an essential part of any trucking business. By keeping accurate records, you can avoid any penalties from the IRS and make sure that your finances are in order. With the help of TranspoCFO bookkeeping services, you can focus on running your trucking business.

How to Apply for Trucking Business Loans and Use Financing

If you operate a trucking business, you’re probably looking for any means to get a competitive advantage. However, as you are aware, the most successful trucking companies are those that quickly adapt to industry trends.

You can get access to the extra working capital you need by applying for a trucking business loan.

How to Choose Financing for Your Trucking Business

This section will mainly focus on trucking business loans; however, there are several loan options to consider, like:

● Business lines of credit:

When you receive a company credit line, you will be given a fixed credit limit against which you can borrow and repay as needed.

● Equipment financing:

An equipment loan may be beneficial If you require financing to purchase business equipment.

● Commercial truck loans:

A commercial truck loan can be obtained by business owners to suit their commercial vehicle needs.

● Business credit cards:

Credit cards are used by some business owners to cover business expenditures. Although they are quite convenient, it is critical to avoid overspending.

● SBA loans:

The SBA offers trucking business owners funding. However, you must demonstrate that your company is unable to obtain standard finance.

The following are some common business loan requirements:

● Time in Business:

Some finance companies have a time in company business requirements, thus new entrepreneurs are unlikely to qualify.

● Minimum Credit Score:

Most financing providers will want to check your credit report. As a result, if you have bad credit, you will need to improve your score before applying.

● Bank Statements:

Most business lenders will ask to see your bank statements. These data may impact your business loan repayment terms and interest rate in addition to qualifying.

7 Ways to Use a Trucking Business Loan

Check out these seven ways how to use your loan to grow your business:

1. Expand Your Trucking Fleet

When it comes to investing in a trucking business, a large fleet may provide a higher return on investment.

Expanding your fleet can save you money on shipping costs by reducing expenses related to:

● Commercial Vehicles and Semi Trucks

● Truck Trailers

● Load Boards

● Permits and Insurance

● Fuel and Tolls

2. Hire More Truck Drivers

As your fleet expands, so will your demand for more drivers. Hiring and training new employees may be time-consuming and costly.

Other costs to consider when employing extra drivers include:

● Commercial driver’s licenses

● Permits and Insurance

● Possible union costs

● Staff uniforms and personal equipment

When looking to expand your trucking business, consider hiring a recruiting firm to acquire experienced drivers.

3. Update Trucking Technology

Trucking technology is continuously evolving and is linked to the industry’s bottom line. As a trucking company owner, you can utilize your trucking loan to cover expenses such as:

● Fuel Management Systems

● Telematics Systems

● GPS Tracking Devices

Buying new trucks with the latest safety features and technology may be expensive, which is why applying for a trucking business loan, such as an equipment finance loan, can make such expenditures possible.

4. Improve Your Business Logistics

Trucking businesses should think about investing in logistics as well. You’ll have better control over your fleet’s performance and be able to save money on shipping with enhanced logistics.

If your organization wants to improve its logistical skills, you should consider investing in:

● Load Boards

● Truck Shops and Repair Facilities

● Warehousing and Distribution Centers

● Customer Care and Invoicing Office

5. Save on Inventory and Purchasing Costs

Because trucking businesses require a large amount of inventory and supplies, you should think about methods to reduce expenses by:

● Purchasing used parts and equipment

● Negotiating better prices with suppliers

With the appropriate trucking business financing, you can take your business to the next level.

6. Pay Off Your Debt

You might utilize the loan to pay off debt. You’ll be able to save money on interest and fees if you improve your cash flow. Your company’s debt-to-equity ratio will also improve, potentially increasing its value.

7. Increase Your Marketing Efforts

By investing in building a marketing strategy for your business, you will attract more clients and boost your income. You may utilize your trucking loan to cover marketing costs, allowing you to spend less of your own money.

Conclusion

You may take your business to the next level with proper trucking financing. You may recruit more drivers, pay off debt, invest in trucking technology, develop marketing strategies, and increase your trucking fleet to propel your company forward.

Five Ways to Cut Down Trucking Business Expenses

Trucking is a vast business. It’s expensive and time-consuming, and unexpected expenses like fuel rates or market fluctuations can wreak havoc on your profit margins if you don’t stay focused. We know running your own company sounds challenging but believe us – it’s worth all the hard work you put in because every day brings new opportunities for growth in this industry!

Here are the top five implemented tips for cutting down and controlling the expenses of your trucking business!

1. Calculate your cost per mile:

The single most vital number you must know for your business is how much it costs per mile to keep your truck running on the road. Yet, many owner-operators don’t take the time or ensure they’re getting accurate information about their spending with regard to this crucial statistic. It may require some spreadsheet work, but it will be worth doing once you have all the data together – think what insights might come from that kind of effort.

2. Track your monthly budget:

One of the essential steps in your business is keeping track of expenses. You need to know where every penny goes to make smart cuts without affecting customer service or revenue streams too much! We recommend working with an expert accountant like us for this task since we can take care of all those pesky numbers that come up during profit & loss statements (P&L).

3. Implement fuel-cutting strategies:

If you want to reduce your fuel costs, there are several ways that can be done without spending too much time thinking about idling. One way is keeping tires at their proper pressure and adding roof fairings for increased efficiency while driving in town or on long trips; this will help cut down your truck’s running costs. Please make sure all staff members use these strategies to reduce demand by helping themselves.

4. Choose an effective route:

When preparing for a hauling trip, it’s important to research the most efficient routes. This way, you can avoid delays or hassles along your journey by taking advantage of shortcuts where they exist and preventing unnecessary stops like toll booths that could add hours to an already long day on the road!

5. Get the right trucking insurance:

Trucking insurance can be expensive, so it’s important to get several quotes before deciding who will best cover your business and its assets. It also helps if you maintain a high credit score; ensure all drivers have good driving records to retain their low rates with the FMCSA (Federal Motor Carrier Safety Administration).

TranspoCFO offers various services for those who operate trucks and want them to run more efficiently, including implementing suitable systems with our help! For detailed information on how our services will help in developing or growing your company, contact us today by booking an appointment.

Owner-Operators Tax Questions: All you need to know

As owner-operators, you must take care of some tax questions. From what deductions you can claim to how to file your return, you will have all the necessary information to ensure you are paying the minor taxes possible.

We have put together a list of the tax questions that owner-operators usually ask.

Common Tax Questions

Q: How much should I need to save for taxes on my business?

A: It is suggested that you save 25–28% of your net weekly income for taxes every three months.

Q: Will I get my tax money back?

A: This depends on your situation, but it is unlikely to happen if you own and drive your truck. If you are getting a tax refund, you have given the government a loan with no interest.

Q: Will my tax preparer send me the 1099-NEC form?

A: No, your 1099-NEC form will be sent to you by your carrier. But if you are a corporation, it is possible that you will not get a 1099-NEC.

Q: What would happen if I did not pay my quarterly tax estimates?

A: If you do not pay all of your taxes, the IRS will charge you penalties and interest.

Q: For a contract worker, what tax forms do I need to fill out?

A: If you have an employee, put them through payroll and give them a W-2 at the end of the year. Give a 1099-NEC to a contract work if you have one.

Q: Should I file a separate tax return for the money I make as an owner-operator and company driver?

A: No. As a sole proprietor, you only have to file one tax return, Form 1040, which has a Schedule C section that lists your business’s income and costs.

Per Diem Questions

Q: How does Per Diem tax deduction work?

A: Per diem tax deduction is for meals and other expenses when traveling for work. As of October 1, 2021, the full-day fee is $69, and the half-day rate is $39. Leave-and-return days are parts of days. Full days are days you cannot drive because of service hours or roadwork rules.

Q: Can I use my e-logs to figure out how many days I have worked per diem?

A: You can if you have e-log records for the whole year. Call your carrier every three to four months and ask for a copy of your e-logs. It is always better to ask for a copy of e-logs by the earliest, as any carriers delete their e-logs every six months.

Deduction Questions

Q: Can truck drivers deduct the cost of fuel tax?

A: Fuel tax is included in the fuel cost, so it is deductible as an outgoing fuel expense for owner-operators.

Q: Can I get the deduction for a home office?

A: An owner-operator may be able to get a home office deduction, but they must pass two tests:

● The home office must be used every day and only for business purposes, and;

● Your principal place of business must be your home office.

Work outside your home, like an over-the-road trucker, but use office space at home to make business calls, organize receipts, and take care of other business tasks. You may be eligible for a home office deduction.

Q: Are medical expenses deductible?

A: If your medical costs are more than 7.5% of your adjusted gross income, you can deduct the amount which is more than 7.5%.

For example, if your adjusted gross income is $50,000 and your medical costs are $6,000, multiply $50,000 by 0.075 (7.5 percent) to find that you can only deduct expenses that are more than $3,750. You can deduct $2,250 for medical costs (6,000 – 3,750).

Q: I bought an Auxiliary Power Unit. Is this purchase tax-deductible?

A: Yes. Send your tax preparer the APU invoice or receipt. It would be helpful if you also wrote down the hours or gasoline spent so we may issue a tax credit.

Q: Dogs on trucks: deductible?

A: Yes, if you have a dog guarding a truck, the expenditures like food and vet bills can be deducted from taxes.

Conclusion

As an owner-operator, it is essential to know about the latest tax news and deductions, which means you need to know what questions to ask your accountant and how the tax code changes. By taking advantage of all the tax breaks you are eligible for, you can keep more of your own money.

BOOKKEEPING SERVICE FOR TRUCKING: Do You Need It? This Will Help You Decide

Trucker bookkeeping services can take care of all your bookkeeping needs. It makes it easy to follow the law and keep your record bookkeeping and finances in order. So, do you need a service that keeps your books for you? Here is why the answer is yes.

As a truck driver, you know how hard it can be to keep the books. There are so many different logs to keep track of, and it can be challenging to keep a note of everything.

Best Practices for Trucker Bookkeeping

By following these simple things, you can simplify the bookkeeping for your trucking company and make more money with less work.

1. Save Every Bill You Get

Keep an envelope in your truck to collect receipts and use folders on your computer or the cloud just for that purpose. Use the folders to keep track of your monthly profit-and-loss statements and to make accurate tax estimates every three months.

2. Make Sure Your Business Has Separate Checking Account

If you own the trucking business, open a second personal account to keep things simple. By creating a separate checking account, you can avoid paying extra fees for a business account.

3. Save All of Your Logbooks

Your logbook or electronic logs prove that you are eligible for per diem (primarily composed of meal costs). If you only use your ELD for truck driver bookkeeping, save and look at your history. Inspections need to know this.

4. Always Keep a Notebook in Your Truck

Use this notebook or phone to keep track of any costs for which you do not have a receipt. To follow IRS rules, you must also keep track of the date, place, amount, and reason for each expense.

5. Maintain All Your Records

You must maintain your tax records for at least three years after filing. Keep quarterly estimated tax payments to the IRS, monthly profit-and-loss statements, insurance documents, maintenance records, warranty information, registration information, settlement and bank statements, credit card statements, and canceled checks.

6. Use an Accounting System

When you employ consistent accounting methods and processes, trucking bookkeeping becomes easy. This way, you can never forget anything.

7. Do a Month-End Closure

For truckers, it is best to close out each month by ensuring you have all of your paperwork. And that you can accurately link your income and expenses to your balance at the end of the month.

8. Make Sure Your Books Can Pass an Audit

Every year, the IRS checks on the taxes of one out of every 25 owner-operators. You do not want that to happen to you, but if it does, you want to know that you have done everything right.

Conclusion

The trucker bookkeeping service can take care of all your bookkeeping needs, making it easy for you to follow the law and keep your finances in order. So, do you need a service that keeps your books for you? Yes, that is the answer.

Good bookkeeping service for truckers will save you time and money and ensure you always follow the law. A trucker bookkeeping service is a way to go if you want to take care of your accounting needs without much trouble.

Five Essential Steps to Start a Trucking Business

The process of starting and owning a trucking business can be overwhelming and tiresome with everything that needs to be done. Whether you’re looking to start a small business in trucking or already driving truckloads, much research and preparation are required before you go down this new path.

Here are five steps to start your own trucking business with one truck.

  • Pen down a business plan:

Writing a business plan can give you a road map for your trucking business. If you’re starting, this document will describe the kind of trucking business you want to operate and what resources you need to work on at maximum performance. This business plan can also prove helpful as you grow your operation or bring on additional drivers. Another critical aspect of any business plan is your vision for growth! Having a clear picture of where you want to take your trucking company will help you avoid common hurdles such as risk aversion. Writing this document might not be easy, but it’ll help ensure your trucking startup doesn’t stumble upon some of the more common roadblocks that can kill an exciting idea.

  • Decide on the entity type of your business:

Setting up your business can feel overwhelming, but the most challenging part is usually figuring out which type of entity to choose. Knowing your options helps you determine the best structure for your business and the tax consequences that go along with that structure. Understanding each entity’s pros and cons will help you decide on the proper system for your business. With TranspoCFO, you’ll find out: What’s the difference between sole proprietorship, S corporation, and LLC? How should I set up my business? Which one should I choose?

  • Decide which carrier you want to drive for:

Suppose you are interested in becoming an owner-operator truck driver. In that case, you must research which fleet will work best for your trucking needs. Once you have found the one that works best for you, it is time to do some legwork. You will have to decide whether or not you want to drive local based on your preferences or if you want primarily long-haul driving opportunities. There are many different carriers; do some research to find out more about their reputation and what type of freight they typically haul. They will list what parts of the country they operate in and the unique freight items they specialize in. Once you have narrowed it down from there, it is time to sign up with a carrier!

  • Own or lease a truck:

Before you set out on your own, one of the most important things to do is obtain your truck. Depending on what type of trucking business you are going to start, you may be able to get a loan from a bank or credit union. If this isn’t an option, some leasing companies offer lease-purchase programs. Through this program, you will make monthly payments on the vehicle while paying off the loan at the end of the term. Other leasing companies allow you to purchase the vehicle anytime during the contract’s duration. In either case, you may be eligible for some discounts on fuel and maintenance costs through these programs.

  • Hire an experienced service provider:

TranspoCFO will help you accomplish all the things you need to do before owning a trucking business. We have been providing these services to owner-operator truck drivers for over 20 years, which means we can recommend the best business entity and tax structure for your industry. We will help you with a business plan, decide what type of vehicle you should drive, and manage all your bookkeeping, accounting, and tax needs while you focus on driving.

Ready to take your business to the next level? TranspoCFO can help you develop a long-term plan of action. Whether it’s accounting, bookkeeping, tax preparation, or unlimited business consulting that you need, we have the tools and experience to get you there!

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