Operating Costs

I check the air in my tires almost every day. Not because I'm anal about it, but because one has a slow leak. Checking 10 isn't that much more difficult than checking 1. I *have* lowered my idle percentage since fuel went up $0.50/gal though.

(The wife does spreadsheets, but that's just for tax purposes)

 

Here's an idea....get your tire fixed.
Obviously, there is a problem, now you have a choice; fix it when its convenient, or fix it on the side of the road. The difference? Roughly $200.

This is exactly what I was talking about. People without good sense. And I'm not at all trying or wanting to bash you, but dang man, you have a problem. Fix it now and roll on

 

I run spreadsheets so I know if and when to bail out.
Hopefully before it’s to late if my numbers are accurate.
I keep track of all my loads and miles. I give them to my dispatcher every month. She seems to work a little harder knowing I’m paying attention. She has an UP month I give her an extra cut in cash under the table. Down month she gets a bottle of wine to enjoy while she thinks about here actions the previous month.

I keep track of everything. It’s the way I’ve been trained in the corporate world over the last 25 years.

The guy I’m leased to doesn’t track anything till the end of the year. He is clearly doing WAY better than I am so.........

 

The costs have to be calculated to the last penny for the purpose of paying the least possible tax. For me, it is harder to do it one week before the filling deadline vs keeping track of it as I go. This is a good proven benefit.

The debate here, however, is about proving that knowing your numbers gives you any real leverage to run more profitable business. I know my numbers, thus I know that I've done miserable this year. Can I do anything at all to change it based on that knowledge? I don't know....but I still believe that it is better to know than not. It is not that hard to know either...simple arithmetic and being organized.

 

It's on the list...LoL
Unlike some, though, I keep an eye on it and as soon as I get to a warmer, drier area, I'll pull the fender off and have the tire repaired.

 

Ok, here's an excellent example of what I'm talking about.
Joe, what's the difference of $5,000 write off on $160,000 in revenue vs nothing?
I save all (most) of my receipts, but if Joe could run the numbers, I think you all would be very surprised.

 

It could be a grand less for the IRS...so I hope at least.

 

No dude, plug it in. I'll bet it's less than $50

 

My goodness. I did not know that... That's almost my liability premium and it amounts for so little.
I'll still give them every penny of it. 5K here and 15K there, you know...the total is $100K easy. For me at least...

 

Impossible to calculate based on revenue. You need to know if you are taking profit as ordinary income (which triggers self employment tax, unless organized as a C-corp), or as profit distribution, and if so, it the profit distribution is subject to the 20% reduction provision. Then we need to know what your AGI is, and what your state and local income tax rates are.

But it could be anything from $0 to about $2,600.......

You have to know the NUMBERS.