Tax & bookkeeping services; expense

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It would be cheaper to do it yourself. There are several software programs specifically designed for trucking industry. The one I prefer is Trucknpro by Foglinesoftware www.trucknpro.com. It is simple to use and not very expensive. There are a couple of others on the market, The Truckers Helper www.thetruckershelper.com and Easy Trucking www.easytrucking.com. Truckers Helper has several versions, but some feel that it is a little more complex to use. Easy Trucking will also do what you need, but I still prefer Trucknpro. I have used all three. Each has either an online demo or trial version you can check out before buying. I have known some who have used Quicken and Quick Books Pro to run their trucking business, too. Is there something specific that you are looking for?

 

You can buy your own software and still use a tax professional. Cost vary from one bookkeeper to another. You can expect to spend from about $35-200/month, depending on what you want them to do. Some could charge more. There are a few companies that specialize in truckers. The software enables you to print out reports that you can send to your tax person. Some tax people may prefer that you to use their software or a spreadsheet. You could use the tax professional for tax planning and end of the year tax reporting. I think that everyone should keep their own books so that you know where you are at any given point. The software enables you to put your load information into they program and it will immediately tell you if you made a profit on that load and how you are doing year to date. It can take time for your accounting person to get it into their system and get back with you.

Another feature of the software is to keep track of maintenance. You are required to keep records on maintenance and that will assist in that endeavor. If you put any maintenance work into the program, you can print out a report at the end of each quarter. If you have all records yourself, you can see how much you are spending on tires, pm's or other maintenance. It just gives you a much better picture of how your business is doing and gives you immediate feedback. If used properly, you will have all fuel and miles in the system for quarterly IFTA and year end reports. That assumes that you are running under your own authority. By looking at your numbers you can easily see if you need to make changes to your business plan. I prefer using a CPA for tax planning and tax advice, not day to day bookkeeping. I have a friend who prefers to use a tax service to keep his books. One thing to keep in mind is that cash flow doesn't necessarily translate into profitability. I have known businessmen who think that they are making money just because they have cash flow. One in particular nearly went broke before he realized what was happening to his business.

Whether you use trucking software, a spreadsheet or paper and pencil, you need to know where you stand in your business. The trucking software just makes it easier. Once you plug in the load information, fuel and other expenses, you can immediately see your fuel mileage, cost per mile to operate and profit by mile as well as gross profit. If you are making too much profit then you may want to get with your tax professional and do some tax planning to minimize your tax bite. Tax people are invaluable, but they can only use what you give them. I have a friend who uses Trucknpro and he also has a tax person. Based upon the figures that he gave his tax person he was able to buy equipment that he could use and reduce his tax bite at the same time. The more you ask a tax professional to do the higher the cost. Each of the software programs that I mentioned, cost around $150, depending on the package. That could be one or two months of using a tax professional to do it all.

Some states allow owners to file IFTA taxes online. With the software you can just print out the quarterly report and you have all miles driven and gallons purchased by state. All you need to do at that point is plug in the numbers to the state program and you are done with your quarterly taxes.

Another advantage of having the software is you can keep a record of those from whom you have gotten loads. I make notes of those that I have gotten loads, both good and bad. I know who to call when I need a load. My notes include those areas where that particular agent or broker has freight and if they have good rates.

If you want the entire bookkeeping and tax service you can check the OODIA website. I believe some are listed. PBS is one of the larger trucking tax services. You may also check around in your local area to see if there is someone who has trucking experience. There are some idiosyncrasies to this business that some may over look unless they are familiar with the business.

 

I personally use Quicken Home & Business and my wife's company she works for. Glad I married an accounting bookkeeper.

I could easily pay her office $250 or more a month to do what I do in Quicken just managing the checkbook. I set-up all my expense categories and assign them to the appropriate tax form.

In the end of the year, it's just a matter of buying Turbo Tax to go with the Quicken, quick save, quick import the information, it's done.

all for less than $200 annually.

I have done this before when I was self-employed 10 years ago., did it myself, then paid a tax accountant $1500 to go over them. I wasted $1500. He got me nothing extra.

 

There are some good tax programs on the market. The problem with them is that they cannot offer tax advice during the current tax year. For that you need to speak with a tax professional. With the trucking software programs you can print out your P & L and/or any reports and just plug those numbers into any online tax program.

 

An accountant will definitely cost you, depending on what you have them do. If they are going to be entering everything, then it will cost you the higher end each month. Get some software and track the stuff yourself, and then have an accountant review it to make sure you are categorizing things correctly. The years I had an accountant do my business taxes it cost me $600+, and that was back in the late 90's. It would probably be about the same, but I do our taxes using turbo tax. It walks you through everything so well, that unless you have a complicated business scenario, it's just as easy to do the stuff yourself. OR, use an accountant for the first year, and then fly solo.