Bookkeeping and accounting tips for trucking company.
Trucking is a one-of-a-kind industry. You have back-office chores to attend to in addition to the day-to-day obligations of running your trucking company. Unless you're a CPA or studied finance in a prior life, accounting may appear alien and perplexing.
Here are the greatest ideas and strategies for managing bookkeeping for a transportation company (especially tip #4). We'll also look at the finest TMS software for managing trucking operations' bookkeeping, including pricing information and the pros and disadvantages of each program.
Tip #1: Stay Current
The most significant reason for staying current is to have a clear view of your present financial condition. Knowing your position will enable you to make better immediate and long-term business decisions. Financial records that are organised and precise provide you with the visibility you need to manage and expand your organisation.
If you don't keep up, a backlog will soon accumulate, leaving you with a mountain of work when you eventually get around to it. Delaying the process also raises the possibility that you would forget what the payments were for. This might lead to classification mistakes, causing you to miss out on reimbursements.
Tip #2: Take Notes
Always keep track of what specific payments were for, even if they are not immediately documented. If you like, you may maintain records on your smartphone or with paper and pen.
It is simple to believe that you would remember payment data, but it is also quite easy to forget. We frequently make or receive money while our minds are elsewhere, making it very simple to forget what the payment was for.
Tip #3: Use a Business Credit Card
This means you won't have to manually enter the information because it is done for you once a payment is received. This can save you a lot of time compared to manually entering the information. It also aids in the elimination of mistakes produced by inadvertently entering incorrect information.
Tip#4: Understand Your Cost-Per-Mile
To determine your cost-per-mile, first, determine the approximate number of miles travelled in any given month. Divide your fixed and variable expenses by this figure to get an average cost per mile for each category. Add these together to find your overall cost per mile of conducting business. MotorCarrierHQ.com offers an excellent calculator for calculating your cost-per-mile.
Tip #5: Lower Your DSO (Days Sales Outstanding)
DSO is a measure of how long it takes to turn a transaction into cash. To determine your DSO, first determine your average daily sales. Divide your total yearly revenues by 360 days to do this. Then, divide your accounts receivable (what you owe customers) by the average sales each day.
Tip #6: Use the Correct Software
Accounting software will assist you in keeping your records up to date. A TMS is the finest answer (Transportation Management System). This is software that has been particularly created to handle a transportation firm.
Last Words on Trucking Bookkeeping
Several considerations will influence which trucking bookkeeping software is ideal for you. These include the number of trucks in your fleet, your level of technological sophistication, and, of course, the cost.
For smaller enterprises, the simplest platforms are preferable. Despite their lack of functionality, they can nonetheless make your bookkeeping much easier. A TMS that allows you greater control over the administration of your operations will be the greatest solution for those who have a larger fleet to handle.