Whether independent owner-operators or large fleet owners, truckers must understand their business costs. Unless you know where your money is going, you won’t know where to make adjustments. Since your profit margin is small, you’ve got to stay on top of expenses. That’s why you need a TMS system.
Understanding the Most Common Cashflow Mistakes in Trucking
Are you wondering why it seems that your company’s money goes out faster than it comes in, so there’s never enough? If so, you need to find ways to get a tighter grip on your finances. A good way to begin is by understanding and avoiding these common cashflow mistakes that many truckers make:
Overextending. It’s vital to know the exact amount of expenses and know when they’re due. Unplanned expenses have a way of sneaking up on you; the next thing you know, your money is spent before you even make it. Our TMS system will help you track all expenses and show you where you need to cut back.
Not knowing your cost per mile. Quotes to customers are based on cost per mile, so the data needs to be accurate down to the last mile. Underbidding the job can wreck your cash flow. Software for trucking is a great tool for avoiding these mistakes.
Ignoring routine vehicle maintenance. This mistake can end up costing you a lot in the long run. Roadside breakdowns are costly and can put your truck out of use for days. With our TMS, you can keep track of routine maintenance to prevent those unexpected repairs.
How can software for trucks ensure cost reduction?
Four main areas of a trucking business need regular monitoring. We refer to them as the four pillars of trucking management. They are
- cash flow,
Each can have a significant impact on your success as a trucker.
Of course, as a busy trucker, you don’t have enough time in your day to check every little detail in those four areas. You want to get organized, but receipts seem to have a way of getting lost. You need to cut costs, but you aren’t sure where to focus your efforts. With a TMS, you’ll find that you are more in control of these small yet crucial details.
So, let’s look at some of the ways a TMS can take care of those details for you. It will streamline your operation to cut costs and increase revenue. Here are some of the other ways a TMS will prove its value:
Real-time data is the key to better planning
Using a TMS in conjunction with your ELD provides up-to-the-minute information. This data will enhance your entire operation. Since an ELD records data from the vehicle’s engine, there’s less chance for errors. It records mileage, vehicle movement, and engine performance. This information can be used in a variety of ways:
Dispatching: Dispatch uses the data to assign loads, plan routes, and track vehicle locations at all times. This feature helps prevent deadheading and double-booking. The data also helps you track mileage to manage fuel costs.
Cash flow: A TMS generates accurate invoices, which helps you get paid quicker. The system also tracks driver pay, IFTA payments, and other expenses. You’ll always know where you stand financially. Also, the vehicle maintenance tracking prevents costly breakdowns which can deplete your cash flow.
Expenses: You don’t always succeed at keeping up with every receipt, so it’s a sure bet you’ve spent more than you remember. A TMS can track those payments to ensure that you know where your money went. This feature is a good tool for determining where you can cut costs.
Reports/Stats: A TMS keeps all your information organized in one place and is accessible at any time. You can generate a variety of reports in seconds. Need a profit/loss statement? Need vehicle maintenance reports for DOT? Want to know if you’re IFTA compliant? Whatever report you need, you can have it with only a few clicks.
Of course, a TMS performs many tasks besides those listed above. Accurate invoicing and payment tracking are only a few of the reasons you’ll enjoy this technology.
Looking for a TMS provider? Check out TruckingOffice and get started today
Finding the right TMS provider will be challenging in a lot of ways. They’re not all the same; some have more features, others cost more, and you won’t know who to believe. But, if you’re ready to get serious and make a choice, our TMS will meet all of your trucking business needs. If you think that sounds too good to be true, here’s a chance to find out for sure. Sign up for this free trial of TruckingOffice TMS. You’ll discover firsthand how our system will make your job easier and increase profits.