It also manages employee and contractor paperwork like W-2 and 1099 forms. Even the most powerful accounting software solution won’t be as effective if your bookkeeping habits aren’t up to snuff. We ranked each accounting software based on its affordability, considering the number of users included in each plan and the costs to add an extra seat.

Because the IRS sees semi-trucks as qualified nonpersonal use vehicles, you must deduct your actual auto costs instead of using the standard mileage method. Keep records of each purchase’s amount, date, location, and business purpose. The first thing every business owner should do to simplify their accounting is to separate their business activities from their 7 best receipt tracking apps in 2021 personal ones. The easiest way is to open up a new checking account and credit card and reserve them for business use only. While they’re theoretically distinct, the line between them is somewhat blurred. Using an accounting solution that can integrate with other apps allows you to streamline your processes, eliminate manual data entry tasks and reduce errors.

Unfortunately, trucking is a business that requires you to be particularly diligent in your record keeping. The cash basis involves recognizing revenues when you receive payments and deducting expenses when you pay them. It’s often even more difficult for truck drivers, whose gas and food expenses could easily be personal costs if they occurred outside of a trucking trip. As a result, you probably shouldn’t try to manage your trucking business’s accounting function without help. It may be worth handling some lower-level aspects, but you’re better off outsourcing the more complex and time-consuming parts.

The Top Trucking Accounting Software

Q7 is a great option for an all-inclusive software that fully integrates with other industry tools. QuickBooks Online is a web-based accounting software that manages the financial aspects of your business. There are no installations or downloads necessary to use this software, and it can be accessed from any web browser.

It does not include payroll or bank reconciliation but can integrate with Quickbooks to give a complete accounting service. However, some trucking companies and owner operators may find general accounting software sufficient if they have separate solutions for trucking-specific needs. Axon is an all-inclusive, fully integrated accounting software for trucking companies. It is easily customizable to meet your needs and can interface with a variety of systems.

• TruckLogics streamlines bookkeeping by limiting manual record entry and delivering one-click financial reports.
• Your logbook and/or electronic log records are your best proof of entitlement to per diem expenses (primarily composed of meal costs).
• In the event of a lawsuit or bankruptcy, separate accounts make it easier to demonstrate that the business is a separate entity from the owner’s personal finances.
• Fortunately, it doesn’t have to take up too much time or energy if you plan ahead.

To help narrow down your search, we reviewed 9 of the most popular software solutions for owner operators and trucking companies. These options range from standalone accounting software to comprehensive trucking management systems that also handle dispatching, fleet maintenance, and other functions. Trucking accounting software encompasses a wide range of technological solutions you can use to maintain your trucking business’s finances. It provides tools and functions that are tailored to the specific financial and accounting needs of your business and manage its overall financial health. By utilizing a trucking software solution, you can simplify financial management processes, save time, and gain greater insights into all financial aspects of your business. Real-time reconciliation is an essential feature of any accounting solution.

Quickbooks is a big name in accounting software, and it provides all of the basic tools but because it is a general accounting software, it misses some accounting features specific to  trucking. Trucking management software that targets large trucking companies often creates pricing plans around the company’s needs but these typically range from $99 up to $500+ per month. Enterprise pricing can be based on a set amount per truck or per software user.

In addition to keeping records of your expenses, you should have documents that prove their validity, such as receipts, trip logs, and account statements. Many business owners learn too late that mingling your personal and business funds makes it hard to identify which transactions belong in which category. Thousands of companies depend on Bloomberg Tax’s research products to mitigate risk and seize opportunities that support businesses’ growth. Taking notes also helps track all cash inflows and outflows, making it easier to chase down invoices. Our team of financial experts is available for consultation whenever you need it. Whether you have questions about tax planning, financial strategy, or any other financial aspect of your trucking business, we’re here to provide guidance.

Understand Your Business Entity Type and Tax Classification

Instead, most owner operators opt for scaled-down software to streamline their bookkeeping. Q7 is capable of managing every corner of your trucking business but may require an experienced bookkeeper to make full use of its accounting features. Because it offers so many different tools, the learning curve can be steep compared to other options. However, Q7 does offer training and technical support to help you get going.

Download our Free Guide: 13 Ways to Save Money as an Owner Operator

For owner-operators looking to learn and personally engage in bookkeeping processes, some tips make the whole process much more straightforward. Here are the best tips for managing the bookkeeping for a trucking business. Remote Books Online can generate regular profit and loss statements, providing a clear overview of your company’s financial health. These reports can help you identify areas where costs can be cut, or revenue can be increased. The International Fuel Tax Agreement (IFTA) requires trucking companies to report and pay fuel taxes in multiple jurisdictions.

This can include tax planning, developing financial statements, and analyzing cash flow. Software can make this analysis simpler by automatically completing calculations and filling out tax forms. While we recommend even sole proprietors keep their business finances separate, this practice also provides a level of legal protection for S-corp and limited liability company (LLC) owners. In the event of a lawsuit or bankruptcy, separate accounts make it easier to demonstrate that the business is a separate entity from the owner’s personal finances. It can also enhance the professional image of your business because it shows customers and vendors that you have a separate financial identity and you’re managing your business responsibly.

Use an accounting system.

While not designed with trucking businesses in mind, Zoho Books offers an end-to-end accounting solution that benefits truckers. It automates processes, such as accounts payable, accounts receivable, payroll, transaction management, and more. Its powerful mobile app is great for tracking receipts and expenses or creating invoices on the go, making it convenient to store your financial information securely in one place.

IFTA tax reports are also generated automatically, with options to choose which trucks to include in the report. Truckers report liking the user-friendly system and find the software has all the basic tools to run their business. The driver settlements function lets you calculate driver pay by the mile, load percent, or a flat rate per trip. IFTA reporting is also easy thanks to Rigbooks importing the latest fuel tax rates for all jurisdictions automatically. No matter your fleet size or how long you have been in business, it is crucial to understand basic accounting terms and financial documents. Accounting explains your company’s financial history, health and overall performance.

However, you can deduct the interest portion of your truck payment plus depreciation on the cost of your truck. Per diems are tax deductions that cover meals at a standard amount vs having to track and deduct actual costs for meals. It’s important to claim your per diems correctly to reduce your gross income, resulting in less money owed to the IRS. To qualify for a per diem deduction, you must be away from home for the night. The first step is to research options and find one with a low interest rate that doesn’t have an annual fee.