Prime Lease-Operator: Questions

Net means gross revenue or all money you made that week minus all expenses: fuel, maintenance, labor, permits, QUALCOMM rental, etc.

What's left after operating expenses is what the government considers to be your net income. Taxes come out of that. For accounting purposes, there are many different ways to look at "net". There's earnings before interest, taxes, depreciation and amortization or EBITDA. There's earnings after all of that. There are other ways to look at it as well. But for the trucking world, we're talking about all your mileage/load pay minus what it took to run the truck that week. That's net income. That's what you're taxed on. Net income after taxes is what you put in your pocket and don't have that hot feeling in the back of your neck like somebody else still has a claim on some of your money.

 

Also, to be safe and to run your business correctly, you need to set aside money every week for maintenance, yearly occurring expenses like license plate registration and permits, etc. If you are truly accounting for all of the expenses you will incur during the year and set aside money for that, that is what will truly be your net income. Some expenses occur every week and when you get your settlement at the end of the week, your company has already taken out all the expenses they can for you. But some things you still have to budget for yourself throughout the year.

 

Oh, I thought you were asking because you didn't understand… guess I should've realized who I was talking to. My bad.

 

I didn't start college until I was married, and I still haven't finished. I was one class away and then I we took a couple classes to try to get my GPA up and failed them, so now I'm three classes away. So yeah, hopefully they can figure out to get their ##### in gear earlier in life and start doing something with their life.