Every owner-operator needs to understand bookkeeping for truck drivers. Fortunately, you don’t need a degree in accounting to handle this aspect of the business.
Here are six tips for handling books correctly:
- Use the right accounting system. Most businesses use either a cash-based or accrual-based system. With the cash-based system, you count income when you receive money and expenses when you pay them. This is usually the best bookkeeping for truck drivers system.
- Maintain your books daily. This is essential to having an accurate picture of where your business is going money-wise. Once you’ve set up your system, keeping the books should only take a few minutes a day.
- Handle checks with care. This is important because business checks are almost as easy to use as cash, which sometimes invites fraud or misuse. Make sure you sign checks in a clear, legible way that discourages forgery. And, when you review canceled checks from your bank, make sure they’re for authorized expenses. Of course, the vast majority of employees and business partners are completely trustworthy. But, as the old saying goes, it always pays to check twice.
- Use a banking account with a month-end cutoff. This is one of the most overlooked rules of bookkeeping for truck drivers. Yet it’s also one of the most important, since coordinating your monthly records will prevent mistakes and misunderstandings.
- Keep your books audit-proof. This applies to both IRS and state fuel tax matters. Maintain separate checking accounts for your personal and business expenses. Save receipts for every business-related purchase. In fact, you may want to create digital copies of each receipt by scanning them into your computer. That way, if the tax collector does come a-calling, you’ll have all your ducks in a row.
- Use the right bookkeeping for truck drivers Of all the tips in this article, this one is the most vital. It’s also why we highly recommend TruckingOffice. Our product was built by truckers for truckers. It offers important features that general-purpose programs just can’t match, ones that can make all the difference when it comes to your trucking business.
Find out for yourself how good TruckingOffice is by taking it for a free 30-day test drive starting today. For further information, please contact us.