You know that feeling when you see your monthly bank statement?  Or your credit card statement that’s 42% more than you expected?   And what is this $145.27 charge from Ultradeala?

Whether you’re an owner-operator or fleet owner, you must control the costs of your operation if you intend to make money. 

What about all those daily costs that chip away at your profit?  Can you lower them if you have a grasp of the big picture?  Absolutely.  So, let’s take a look at the top 10 expenses truckers should track on their business reports if they want to succeed in the business.  

Take the Quiz

1. Your truck spends a week in the shop. Which expenses keep working even though you aren’t?

1. Fuel and DEF
2. Tolls and scale fees
3. Truck payments and insurance
4. The french fries under the passenger seat

Answer: C. Truck payments and insurance
generally continue whether the truck moves or sits.

2. You drive 12,000 miles this month instead of 8,000. Which expense will probably increase?

1. Fuel
2. Your monthly load board subscription
3. Your truck payment
4. Your accountant’s concern about your receipt collection

Answer: A. Fuel is a variable expense
because it changes with how much you operate the truck.

3. Your phone plan costs $100 per month, plus extra charges when you exceed the data limit. What kind of cost is it?

1. Fixed
2. Variable
3. Mixed
4. A reminder to stop streaming movies at the fuel island

Answer: C. The monthly charge is fixed,
but the additional usage charges are variable.

4. Which statement best explains fixed and variable expenses?

1. Fixed expenses never change, and variable expenses
   change every Tuesday.
2. Fixed expenses generally continue regardless of mileage, while variable
   expenses change with truck use.
3. Fixed expenses are deductible, but variable expenses are not.
4. Fixed expenses are large, and variable expenses are whatever is left in the
   cup holder.

Answer: B. Fixed expenses usually
continue when the truck sits. Variable expenses rise or fall based on mileage,
loads, routes, and truck use.

How Did You Score?

• 4 correct: You know exactly where the money went. That already puts you ahead of the receipt under the seat.
• 3 correct: Your expense reports are probably in decent shape.
• 2 correct: You understand the basics, but your CPM may still have a few surprises.
• 0 or 1 correct: Start with the truck payment. It has never forgotten you.

Now that you know which costs keep running and which rise with miles, you can see why tracking both matters.

What Is the Difference Between Fixed and Variable Costs?

Before completing any reports, you need to be sure you’ve included everything.  First, you should classify
your expenses into two main categories:

1. Fixed costs: Fixed costs are the expenses you’ll have whether or not your truck ever leaves the parking lot.  These costs usually stay the same but may change a little from time to time.
2. Variable costs: Variable costs are the expenses you incur while driving your truck.  This amount varies with the number of miles driven.

Those categories aren’t perfect. Some costs are mixed. Your phone plan might include a fixed monthly charge plus additional usage fees. The important question is which costs continue when the truck sits and which increase when it runs. So one bill can have fixed and variable costs.  Go figure.

Why Should You Know Your Expenses?

If you can’t do anything about your expenses, then why bother understanding them? Because that’s the wrong take on expenses. You may not be able to eliminate every expense, but you can reduce waste, compare prices, and plan for increases. Knowing your costs also helps you decide whether a load pays enough to cover your expenses and leave a profit.

Why Track Your Expenses?

Tracking your expenses shows what the truck costs when it runs and when it sits. Breaking those costs down by day or mile helps you understand what every load must cover.

What is Cost Per Mile (CPM)?

In trucking, one key number is the Cost Per Mile (CPM) or expenses per mile. This number shows how much it costs you to move your truck one mile down the road.  In an industry where freight rates are often quoted per mile, this number is invaluable.

• You know your break-even point and can identify loads that won’t cover their share of your costs. Include loaded and deadhead miles when comparing the rate.  There’s no point in taking a load where you’re going to lose money. 

• The cost of deadhead miles (empty miles) becomes obvious.  When comparing loads, the deadhead miles may break the tie.

CPM can show you where cost-cutting can be most efficient.  For example, when you calculate CPM, you might see:

• Fuel might be 45% of your variable CPM
• Tires + maintenance might be 20%
• Tolls might be 5%

That tells you instantly where cutting matters:

• Improving fuel mileage may save more than focusing on smaller expenses.
• Better tire inflation habits save more than shaving $3 off lunch.

Top 10 Expenses For Truckers to Track

1. Truck and trailer loan or lease payments
2. Insurance premiums
3. IRP registration (if required)
4. Subscriptions: load boards and trucking management software
5. Phone and internet service
6. Fuel and DEF
7. Meals and lodging
8. Tolls, paid truck parking, and commercial scale fees
9. Tires
10. Maintenance and repairs.

The first five are generally fixed or recurring costs. The last five usually rise with miles, trips, routes, and time on the road. Some expenses—including phone service, maintenance, and certain subscriptions—can include both fixed and variable costs.

What Fixed Expenses Should You Track?

Fixed expenses that generally continue whether the truck runs or sits are rarely shown on a “per mile” basis.  Breaking those monthly or weekly costs down by day or mile helps you understand what every load must cover. Loan payments, insurance premiums and various services (phone, internet, subscriptions) bill by the month.

What Variable Expenses Should You Track?

Tracking variable costs lets you know how much you spend on the road and where you can cut back. Fuel, food, lodging, and tolls are not usually covered in a rate con, so truckers should consider them before accepting a load.

What’s the Best Way to Track Expenses?

For many owner-operators, complete trucking management software is the most efficient way to track expenses. 

Some people might say the best way to track expenses is to use a credit card for all purchases.  Then you have an automatic record of all your purchases.  The only problem with that is a credit card statement doesn’t tell you what the $145.27 charge to Ultradeala was for, only that you made it.

The value of using trucking management software is in the time it will save you later. 

Enter the data once, and it’s available for the dispatcher, driver, and invoicing bookkeeper.  If you’re an owner-operator, that’s all you.  Expense reports can make business decisions easier, but that’s not their only benefit.  When it’s time to create the invoice packet, the rate confirmation, POD, and any reimbursable expense receipts are already connected to the load.

Put Your Expense Data to Work

Tracking expenses is only the first step. TruckingOffice PRO uses your load, mileage, income, and expense data to create reports that show your cost per mile, where your money goes, and which costs may need attention.

Spend less time piecing together numbers and more time using them to make better business decisions.

Start your free TruckingOffice PRO trial today.