Basic Accounting For Trucking Companies

If you link your trucking accounting software to your business bank account average cost method formula calculator and credit card, it should track your every invoice and expense automatically. Even then, most state-run DOTs require that drivers adhere to the compliance regulations. To comply with the FMCSA’s regulations, you must consistently reapply for and update your licenses, insurance policies, and other pertinent documentation. Your company’s reputation, permits, and legality depend on strict, continuous adherence.

Hours-of-Service Records

In addition to attracting customers, a positive reputation can lead to partnerships and collaborations with other businesses in the industry. Trucking companies that have a reputation for compliance and professionalism are often sought procure-to-pay process after as trusted partners. These collaborations can provide new business opportunities and expand the company’s reach. Last but certainly not least, it’s always a good idea to hire a CPA for help with tax preparation and trucking accounting services. The IFTA is a way to redistribute the fuel taxes truck drivers pay in the lower 48 states and the 10 Canadian provinces. It ensures your funds go to the areas where you used your fuel instead of the ones where you purchased it.

Compliance with Load Securement Guidelines

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. 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.

Protect Your Company’s Compliance Through FMCA Filings

If you need further assistance with your trucking company’s bookkeeping, you can explore more of the articles we have written, or call ATBS for all of your accounting, tax, and bookkeeping needs. Federal Motor Carrier Authority Filings can help you understand and meet the DOT requirements for trucking companies. Contact us at Whip Around for more information about DOT compliance, record keeping, vehicle inspection reports, or any other related topic.

Records of all drug and alcohol tests performed on drivers must be maintained in a secure location under lock and key away from regular personnel files. As an employer, it’s vital that a transportation company, or carrier, maintains accurate records of all payments made to drivers. This includes regular payroll payments, settlement sheets, and any other related documentation. Not only does this documentation prove that the company has made the appropriate payments, it also provides information driver’s and the company will need when tax time rolls around. Electronic logging devices (ELD) are meant to create safer conditions for drivers and to prevent fatigue-related accidents or  issues. When connected to the vehicle’s engine, ELDs  automatically records information to make it easier and faster to track, manage and share records and helps drivers track their limits.

1. By following these hiring and onboarding procedures, trucking companies can effectively recruit and train new employees, contributing to their overall success and compliance with industry standards.
2. Technically, the law does not require you to keep any specific records, so you should choose a recordkeeping system suited to your trucking company’s needs.
3. No matter your fleet size or how long you have been in business, it is crucial to understand basic accounting terms and financial documents.
4. Good records will also help you identify your sources of receipts, keep track of deductible expenses, and prepare your tax returns.
5. It equals $100 plus $22 for every 1,000 pounds over 55,000 pounds up to $550 and 75,000 pounds.
6. This helps protect the safety of drivers and the public and maintains the company’s reputation as a responsible and compliant operator in the industry.

Simple Tips For Record Keeping For Truck Drivers

By implementing and enforcing a well-designed policies and procedures manual, companies can cultivate a positive reputation that boosts their business success and sets them apart in the industry. A positive reputation also contributes to business success by attracting new customers and retaining existing ones. When potential clients what are special item numbers sins see that a trucking company is known for its adherence to policies and procedures, they are more likely to choose that company over competitors.

Record keeping for truck drivers is a must, but it doesn’t have to be complicated. Nick Gallo is a Certified Public Accountant and content marketer for the financial industry. He has been an auditor of international companies and a tax strategist for real estate investors.

Depending on the record, you may have to keep certain files for up to five years to be in compliance with the Department of Transportation (DOT) rules. All freight that is transported by a carrier must be accompanied by a bill of lading (BOL) this acts as a receipt for the freight services as well as providing details about the contents of the shipment. It is a legally binding contract that provides the driver and carrier with the details necessary to process the shipment and invoice the shipper properly. A manifest is also required which acts as a type of tally-sheet giving a detailed summary of all the bills of lading that are included in a specific trip. Remember, it’s easier to create a clean, organized DOT record-keeping system from the very beginning.

Fleet owners and drivers are expected to comply with the rules and regulations imposed by the DOT, or face stiff fines and penalties. Rules and regulations are continually updated and revised making it imperative that fleet owners keep up with the changes to ensure compliance. A positive reputation is essential for the long-term success of a trucking company.