Effective Accounting Tips for Truckers
Being organized and responsible are the main qualities of an entrepreneur. With them, you can easily figure out how to collect receipts and do your job efficiently. We suggest you to use 10 methods that will help you increase your income without any difficulties.
Tip 1: Keep all receipts for payment
There’s no reason to give additional amounts to the IRS. Keep all, even the smallest receipts, so you can show them to the taxman later and legally deduct some of the expenses. Put receipts in a separate place: an envelope, a folder, or a special cloud on your computer. You can use these receipts to make a competent profit and loss statement.
Remember that scans can also be used, but it is better to keep the original receipts in any case. This serves as your guarantee when buying goods.
Tip 2. Open a new checking account for your company
If you are the full owner of the company, you can open a separate bank account. This simple operation will save you money on fees associated with your business. Plus, with a separate business account, it will be much easier for you to keep records and you will have full access to all the data.
Tip 3. Use your new credit card to cover business expenses
Carefully review the banks’ offers and find the best card. The best option is a card with a low interest rate, no annual fee and a generous cashback. To avoid debt, pay the right amount each month. It will be much easier for you to calculate your expenses because they will all be categorized: food, gas, water, maintenance, and more.
Tip 4. Don’t throw away the logbooks
An in-flight logbook is proof of your entitlement to regular expenses. If you’re using an EIR (electronic logging device) instead of a logbook, make sure your payment history is stored on the device for starters. You can’t do without it during inspections.
Tip 5. Always keep a notebook with you
Keep track of all expenses in a notepad or notebook. You can also use electronic media. This is necessary when a receipt – the main evidence of the transaction – cannot be obtained. This report must also be given to the accountant at the end of the month.
Don’t forget: you need to indicate the date, time, place, cost and type of service in accordance with current regulations.
Tip 6. Keep your records
All information that will be entered on your tax return should be kept intact for three years. Don’t get rid of your records, keep them in a separate box for emergencies. This applies to tax payments, income statements, insurance information, registration information, bank statements.
Tip 7. Don’t neglect the accounting system
Maintaining your bookkeeping will become much easier if you use modern accounting methods. The most common in this industry are the accrual method and the cash method. Each of them has features and advantages. Cash accounting is the easiest: you only keep track of the finances you receive. Accrual accounting works a little differently: first you keep track of income (before you pay it), and then you keep track of paid bills. At the end of the month, the data is reconciled.
Tip 8. Update the books regularly
Updating your books is an effective way to manage your finances. Enter expenses in the ledger as needed. Don’t rely on your memory, because it’s impossible to remember all the expenses you need. Rely on the books: even if receipts are lost, the records will remain.
Tip 9. Always check your finances
Electronic payments make things much easier. You don’t have to wait for a check to be cashed. Keep track of your payments with electronic receipts, and monitor your spending daily: especially if someone other than you has access to the account. This will keep you from unexpected financial losses.
Tip 10. Reconcile the month
At the end of the month, reconcile all of your income and expenses. This will allow you to make sure that the documentation is complete with the records, the balance is correct, and the month is completely closed.