What are the bookkeeping requirements for trucking companies?
Trucking bookkeeping goes beyond standard small business accounting. The industry has specific compliance requirements and operational tracking needs that general bookkeepers often miss.
IFTA (International Fuel Tax Agreement) is the biggest compliance requirement. If you operate in multiple states or into Canada, you need to track miles driven and fuel purchased in each jurisdiction. Every quarter, you file an IFTA return that calculates what you owe each state based on fuel consumption rates and miles traveled. Your bookkeeping system needs to capture fuel purchases by state and mileage by jurisdiction, usually from ELD or GPS data. Getting this wrong means audits, penalties, and potential loss of operating authority.
Per-mile cost tracking separates profitable trucking companies from struggling ones. You need to know your cost per mile for fuel, maintenance, insurance, driver pay, and equipment costs. When a broker offers you a load at $2.15 per mile, you need to know immediately whether that covers your costs. Most transportation and logistics companies that fail do so because they accept loads that lose money without realizing it.
Equipment depreciation is substantial. Trucks and trailers represent major capital investments, and how you depreciate them affects both your tax burden and your understanding of true profitability. Section 179 deductions can be valuable, but you need to understand when accelerated depreciation makes sense versus spreading it over the useful life of the equipment.
Driver-related expenses depend on your business model. Owner-operators mean tracking 1099 payments and settlements. Company drivers mean handling payroll, per diem allowances, and benefits. Lumper fees, detention pay, and accessorial charges all need to be tracked and categorized correctly for accurate job costing.
Insurance costs are significant. Cargo insurance, liability coverage, physical damage, and workers’ comp all need to be tracked separately. These aren’t small numbers and they directly affect your per-mile calculations.
Permits and registrations are ongoing expenses with different renewal cycles. USDOT registration, MC authority, UCR, IRP, state permits, and hazmat endorsements all need tracking. Missing a permit deadline can sideline a truck and cost you revenue.
Cash flow tracking matters more in trucking than many industries. Brokers and shippers often pay in 30 to 60 days while you’re paying for fuel weekly. If you factor your receivables, those factoring fees need to be tracked and understood as part of your cost structure.
Maintenance and repair records serve multiple purposes. They’re tax deductible, they help you understand true equipment costs, and they’re required documentation for DOT compliance. Keep detailed records tied to specific vehicles so you know which trucks are costing you money.
Working with Merrimack Valley bookkeepers who understand these requirements means your system gets set up correctly from the start. The chart of accounts needs to separate expense types that matter in trucking, and the reporting needs to show you per-mile profitability, not just overall profit and loss.
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