If you own your own rig or just have the desire to manage a trucking business, be prepared to balance your on-the-road time with a laundry list of tasks that are required to run an efficient day-to-day operation. Happily, there are many benefits associated with this type of work, from healthy earnings potential to running the business exactly as you always said you would back in the day when someone else was the boss. Like most enterprises, the first two years can make or break a newbie, but if you stay focused, commit to putting in your share of sweat equity and follow the suggestions of those who have enjoyed long, satisfying careers as trucking business managers, your efforts will be rewarded, on and off the road, now and in the future.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Prahladrai
Prahlad Rai
You will decide on the type of trucking you're going to do such as hauling for a motor carrier, sub-hauling for a broker or various brokers or becoming a prime hauler for various businesses.
Based on your needs you have chosen the type of equipment you are going to purchase or lease and how the financing is going to take place. You will have to decide what type of entity to operate under. For now, we will assume you will be a sole proprietor. We recommend you open a separate checking account for the business. Remember, you should maintain approximately three months of working capital in your checking account to cover operating and unforeseen expenses. Keep in mind you will be paying expenses in advance of receiving any income.
It is necessary to line up a mechanic and to decide whether you are going to be doing the regular maintenance yourself. A common misconception is that if you do the repair work yourself, you get to deduct what the maintenance would have cost on your tax return. Not true! You cannot deduct your own labor.
When you are finally operating your truck, you will need to maintain your records in an orderly fashion so that the proper bookkeeping can be done. A full accounting of your income and expenses is not only necessary for the preparation of your income tax return, but is also used as a major tool toward your decision making process. Keep in mind that you need to keep all receipts.
The bookkeeping should be done either by an outside bookkeeping service or you will need to take care of it yourself. In trucking, as well as in any business, your work will create a multitude of paper. The paper work must be organized so that the bookkeeping can be done. The goal is to have operating statistics or a profit and loss statement.
If you're going to do your own bookkeeping, you need to maintain a record of your income and expenses. Your income represents the cash that you have received. If you haul for more than one entity or company, you need to keep track of the money you have earned from each and check it off against the money you actually receive from that company so you know what is outstanding and due you. This is known as accounts receivable. This is important in terms of your collections and in terms of planning. Another way to keep track of money owed to you is to keep open invoices in one folder and paid invoices in another.
Expenses incurred need to be recorded. You need to keep track of your expenses by category such as tires, fuel, parts, repairs, insurance, telephone, etc. This can be done in journals or schedules or by computer. There are numerous computer programs available that can keep track of your income & expenses.
Based on your needs you have chosen the type of equipment you are going to purchase or lease and how the financing is going to take place. You will have to decide what type of entity to operate under. For now, we will assume you will be a sole proprietor. We recommend you open a separate checking account for the business. Remember, you should maintain approximately three months of working capital in your checking account to cover operating and unforeseen expenses. Keep in mind you will be paying expenses in advance of receiving any income.
It is necessary to line up a mechanic and to decide whether you are going to be doing the regular maintenance yourself. A common misconception is that if you do the repair work yourself, you get to deduct what the maintenance would have cost on your tax return. Not true! You cannot deduct your own labor.
When you are finally operating your truck, you will need to maintain your records in an orderly fashion so that the proper bookkeeping can be done. A full accounting of your income and expenses is not only necessary for the preparation of your income tax return, but is also used as a major tool toward your decision making process. Keep in mind that you need to keep all receipts.
The bookkeeping should be done either by an outside bookkeeping service or you will need to take care of it yourself. In trucking, as well as in any business, your work will create a multitude of paper. The paper work must be organized so that the bookkeeping can be done. The goal is to have operating statistics or a profit and loss statement.
If you're going to do your own bookkeeping, you need to maintain a record of your income and expenses. Your income represents the cash that you have received. If you haul for more than one entity or company, you need to keep track of the money you have earned from each and check it off against the money you actually receive from that company so you know what is outstanding and due you. This is known as accounts receivable. This is important in terms of your collections and in terms of planning. Another way to keep track of money owed to you is to keep open invoices in one folder and paid invoices in another.
Expenses incurred need to be recorded. You need to keep track of your expenses by category such as tires, fuel, parts, repairs, insurance, telephone, etc. This can be done in journals or schedules or by computer. There are numerous computer programs available that can keep track of your income & expenses.
puneet.jaiswal1
Puneet Jaiswal
with a well organised & structured plan you can achieve the success in Trucking Business.
Prahladrai
Prahlad Rai
Running a trucking business requires discipline, not just in your finances, but in your attitude. With both clients and employees to manage, your goal is to create an environment that keeps your employees and attracts more business