A Monthly Bookkeeping Checklist for Owner-Operator Truck Drivers
Owner-operators are responsible for much more than driving. You may also be finding loads, reviewing settlement statements, managing fuel costs, scheduling repairs, communicating with dispatchers, and keeping the business profitable. With everything happening on the road, bookkeeping can quickly fall behind.
Unfortunately, waiting until tax season to organize an entire year of transactions can create missing deductions, inaccurate records and an unclear picture of whether the business is actually making money. A consistent monthly bookkeeping routine can make tax preparation easier while helping you make better decisions throughout the year.
Record All Business Income
Start by confirming that every source of business income has been recorded.
Depending on your operation, income may include:
Load and mileage payments
Fuel surcharges
Detention or layover pay
Stop-off and accessorial charges
Direct customer payments
Factoring-company deposits
Reimbursements and other business income
Your gross settlement may not equal the amount deposited into your bank account. Factoring fees, insurance premiums, fuel advances, equipment payments and other charges may be deducted before you receive the deposit.
Recording gross income and the related expenses separately gives you a more accurate picture of what the business earned and spent.
Monthly Bookkeeping Tasks
Categorize Your Trucking Expenses
Review the month’s transactions and assign each business expense to the appropriate category.
Common expense categories may include:
Fuel and DEF
Repairs and maintenance
Tires and replacement parts
Truck and trailer payments
Commercial insurance
Registration, licenses and permits
Tolls, scales and parking
Factoring and processing fees
Dispatch and broker fees
Electronic logging devices and subscriptions
Safety equipment and trucking supplies
Business phone and internet expenses
Travel, lodging and qualifying meals
Accounting, legal and professional services
Business expenses generally must be ordinary and necessary for the business. Personal purchases should not be included in your business expenses.
The tax treatment of truck purchases, loan payments, depreciation, meals and mixed personal and business expenses can vary. Keep complete records and discuss these expenses with a qualified tax professional.
Reconcile Your Accounts
Compare your bookkeeping records with your:
Business bank statements
Business credit-card statements
Fuel-card statements
Carrier settlement statements
Factoring-company reports
Loan and lease statements
The ending balances should match.
Monthly reconciliation can help identify duplicate entries, missing deposits, incorrect charges, personal expenses, and transactions placed in the wrong category.
Save Supporting Documents
Keep receipts, invoices, settlement statements, repair orders, insurance documents and payment confirmations.
Electronic storage is often easier than keeping loose paper receipts in the truck. Create folders by year and month or use bookkeeping software that allows receipts to be attached directly to transactions.
The IRS explains that good records help business owners monitor performance, prepare financial statements, track expenses and support information reported on tax returns. Review the IRS’s small-business recordkeeping guidance.
Prepare for Estimated Taxes
Owner-operators may need to make estimated tax payments during the year. The appropriate amount depends on business profit, other household income, tax structure and previous payments.
Current monthly bookkeeping gives your tax professional better information for estimating what you may owe. It also reduces the likelihood of discovering an unexpected tax balance after the year has ended.
Bookkeeping Should Help You Run the Business
Good bookkeeping is not only about preparing a tax return. It should show you where your money is going, whether your operation is profitable and what needs attention before a small issue becomes an expensive problem.
A monthly routine is much easier to manage than sorting through twelve months of transactions at tax time.
Bookkeeping Support for Houston-Area Truck Drivers
Infinity Tax & Financial Services provides bookkeeping and tax support for owner-operator truck drivers and other small-business owners throughout the Houston area.
Whether your books are several months behind or you need ongoing monthly support, our team can help organize your income and expenses, reconcile your accounts and provide financial reports that make sense.
Frequently Asked Questions
How often should an owner-operator update their bookkeeping?
Bookkeeping should generally be updated and reconciled every month. Businesses with a high volume of transactions may benefit from more frequent updates.
Should I use a separate business bank account?
Using a separate business bank account makes it easier to distinguish business activity from personal spending. It can also make bookkeeping, tax preparation and financial reporting more accurate.
What happens if my trucking books are already behind?
Catch-up bookkeeping can organize prior transactions, reconcile the accounts and correct categorization issues. The sooner the records are addressed, the easier it is to locate missing information.
Does bookkeeping determine which expenses are deductible?
Bookkeeping organizes and documents transactions. The deductibility of a particular expense depends on tax law and your specific circumstances. A qualified tax professional should review uncertain items.