Accounting/bookkeeping

Lawd,can you do ALL of ours toooooo???? My two cents? DO NOT COMBINE PERSONAL WITH BUSINESS ACCOUNTS! Keep them separate. And how long to keep receipts,statements? UNTIL THE I.R.S. GOES OUT OF BUSINESS!!! Meanwhile if its business related,keep it filed!!!
I just bought a Neat receipt scanner to help,but it's a headache to figure out at first. Ugh

 

Absolutely not. Only a portion of the house..i.e. the square footage of the area that is your office. Sounds like your going to do a great job for him,if I were you I'd contact OOIDA. Or get an accountant to set y'all up maybe the first go around so you can get familiar with the "do's and dont's"

 

You may want to consider buying some software specifically tailored to the trucking industry. Much of what you will need to track is included in most of the programs, but you can customize them to some extent. I like trucknpro (www.foglinesoftware.com). It is simple to use and not very expensive. They have several versions, depending on your business. Another you could check is The Truckers Helper (www.thetruckershelper.com) Some people think that it is more complex, but it is a good software package. The other one that I am familiar is Easy Trucking (www.easytrucking.com). All three programs will do what you need and all of them have either a trial period or on line tutorials that you can check to see if they will work for you.

Things you will need to keep track of include all costs associated with running the truck. He will need to keep quarterly maintenance records on his equipment. The software can help with that. You will also need to keep log books. Drivers can take a daily per diem and his logs can provide documentation. You can use a spreadsheet to keep track of profit and loss, but software specific to the industry might help. If he runs his own authority he will need to track and file quarterly fuel tax reports (IFTA). I would recommend that he get a box of envelopes and use an envelope for each load. He should put all expenses associated with each load in a single envelope. I put the load number, where I deadhead from, where I pick up and deliver and the dates. I also put the load pay on the envelope. I will also put the states traveled, miles by state and gallons purchased in each state. You can find preprinted trip envelopes in most truck stops, but the blank ones are much cheaper. Using the preprinted envelopes will have all the trip information on them to make it easier. Another thing, each driver must have a driver qualifications file, even if you are the only driver. You will need to keep a hard copy of medical card/examination and must participate in a drug consortium. Records should be kept for a minimum of 7 years. I have business records that go back over 40 years. You can pick up a driver qualifications file packet in most truck stops. It will list everything that must be included in the file.

 

I use a credit or debit card for all road expenses. It is good for additional documentation while on the road, in addition to your logs. For tax purposes, you can track each daily expense or use the per diem. I think that last year the per diem was $59/day. As long as you can prove you were on the road for business, you don't necessarily need to keep close track of your daily expenses, such as meals, etc., That is why your logs and using a debit or credit card is a good idea.

You are on the right track with your files. If he is making equipment payments, you may want a file for those. Fuel is something that I like to keep separate from maintenance items on my equipment. Fuel is your single largest expense in this business. It is a good idea to have a separate bank account for your business. It helps to keep expenses separate. You could set up a file for your bank statements. Some people have a separate maintenance account where they contribute a flat rate from each settlement. Some contribute from $0.08-0.15/mile to their maintenance account. This is only for major maintenance costs, such as an engine or transmission replacement, although some will use the account for tires and other maintenance costs.

You may want a file for insurance. Some people separate workers comp or occupational accident insurance from their collision and bobtail insurance. I believe that the insurance costs are reported the same on the taxes. That is up to you. If he pays his own fuel taxes (IFTA), you may want a separate file for those expenses. If he pays for his own base plate and permits, you may want a separate file for those costs. Most carriers charge back fees to owner operators who lease to them. You could separate those fees or make a file and list each fee. The base plates, IFTA and other expenses should be deducted from his settlements, but you need to know what he is spending.

OOIDA has a spreadsheet you can download that might help. www.ooida.com. I don't recall if you need to be a member to access the spreadsheet. Whether you run your own authority or lease a truck to another carrier, it is important to know your operating costs. The spreadsheet you download can help. OOIDA is a good resource that you might want to contact. If he is not a member, he should consider joining. The regular membership is $45/year. If you join during certain times of the year or at one of the truck shows, you can usually join for $25/year. I think that a discount is usually offered sometime in December or January. It is the closest thing that drivers, owner operators and small fleet owners have as a trade organization. He will need workers comp or an occupational accident policy. OOIDA does sell an occupational accident policy. They also offer other types of insurance, such as bobtail and collision. He may be able to purchase those from his carrier. I always preferred having an outside source when I leased to another carrier.

Many of us have been around this business for some time. We have a broad range of experience. Feel free to ask anything you wish.

 

I like quick books!

 

I would recommend using Profit Gauges. It's designed for the owner operator, has a short learning curve, and it's customizable to your specific needs. They have a free trial so you can test it for yourself. Here is a link for them; http://help.mygauges.com/customer/portal/topics/7931-profitgauges/articles I hope this helps.