How to Start a Trucking Company: The Software You Need and Pitfalls to Avoid
How to Start a Trucking Company:
Starting a trucking company sounds straightforward. Buy a truck, find loads, hit the road, make money. If only it were that simple.
The reality is that most new trucking companies fail within the first year. Not because the owners can’t drive or find freight—but because they underestimate the operational complexity lurking behind the scenes. Paperwork piles up. Cash flow gets tight. Compliance deadlines sneak past. And suddenly that dream of being your own boss turns into a nightmare of late nights and mounting stress.
Here’s what nobody tells you: the trucking companies that survive and thrive aren’t necessarily the ones with the best trucks or the most loads. They’re the ones with the best systems. The right software stack can mean the difference between building a sustainable business and becoming another statistic.
This guide breaks down exactly what software you need to start a trucking company, the pitfalls that sink new operations, and how to set yourself up for long-term success.
The Software Stack Every New Trucking Company Needs
1. Transportation Management System (TMS)
What it does: A TMS serves as the central nervous system of your trucking operation. It handles load management, dispatch, customer communication, invoicing, and reporting from one platform.
Why you need it: Without a TMS, you’re juggling spreadsheets, sticky notes, and memory. That works for about a week. Then loads slip through the cracks, invoices go unsent, and chaos takes over.
The pitfall it prevents: Disorganization is the silent killer of new trucking companies. You get busy chasing freight and forget to bill a customer. You double-book a driver. You lose track of who owes you money. A TMS keeps everything visible and organized.
What to look for: Start with something designed for small fleets that can scale as you grow. You need load tracking, dispatch capabilities, invoicing, and basic reporting at minimum. Axis TMS offers these core features in a platform built specifically for trucking operations, giving new companies a centralized hub without the complexity of enterprise software.
2. Accounting Software
What it does: Tracks income, expenses, invoices, and payments. Generates financial reports. Helps you understand whether you’re actually making money.
Why you need it: The IRS doesn’t care that you were too busy hauling freight to keep your books straight. Neither does your bank when you apply for a loan. Clean financial records are non-negotiable.
The pitfall it prevents: Many new trucking companies have no idea whether they’re profitable until tax time—when it’s too late to fix anything. They confuse revenue with profit. They forget to track expenses. They get blindsided by tax bills they can’t pay.
What to look for: QuickBooks Online is the industry standard for small trucking companies. It’s user-friendly and integrates with most other trucking software. Make sure whatever TMS you choose can sync with your accounting system to eliminate double data entry.
3. Electronic Logging Device (ELD)
What it does: Automatically records driving time and hours of service to comply with federal regulations. Replaces paper logbooks.
Why you need it: It’s the law. The Federal Motor Carrier Safety Administration (FMCSA) requires most commercial drivers to use ELDs. Operating without one means fines, out-of-service orders, and potential shutdown.
The pitfall it prevents: Hours of service violations are among the most common citations for new trucking companies. Drivers push too hard, logs get sloppy, and inspectors notice. An ELD keeps you compliant automatically.
What to look for: Reliability matters more than fancy features. Choose an ELD with good reviews for accuracy and customer support. Make sure it integrates with your TMS so dispatchers can see driver hours when assigning loads.
4. GPS Tracking System
What it does: Shows the real-time location of your trucks. Provides data on speed, stops, and route history.
Why you need it: Customers expect to know where their freight is. Dispatchers need visibility to make smart decisions. And if something goes wrong, you need to know exactly where your truck is.
The pitfall it prevents: Flying blind leads to bad decisions. Without GPS tracking, you can’t optimize routes, respond to delays effectively, or provide accurate ETAs to customers. You also can’t spot problems like unauthorized stops or inefficient routing.
What to look for: Many ELD providers include GPS tracking. If yours doesn’t, you’ll need a separate solution. Look for platforms that integrate with your TMS for a unified view of operations.
5. Fuel Card Program
What it does: Provides a payment card specifically for fuel purchases. Tracks spending, restricts purchases to fuel-only, and often provides discounts at participating truck stops.
Why you need it: Fuel is your biggest expense. Managing it with personal credit cards or cash is a recipe for lost receipts, unclear expenses, and potential fraud.
The pitfall it prevents: Fuel theft and misuse drain profits from trucking companies every day. Drivers fill up personal vehicles. Unauthorized purchases slip through. Without tracking, you never know. Fuel cards create accountability and a clear paper trail.
What to look for: Compare discount networks to see which card offers savings on the routes you run most. Look for integration with your accounting software and TMS for streamlined expense tracking.
6. Compliance and Safety Management Software
What it does: Tracks driver qualifications, vehicle maintenance schedules, drug testing requirements, and other regulatory obligations.
Why you need it: The trucking industry has more regulations than most new owners realize. Driver files must contain specific documents. Vehicles need regular inspections. Drug testing must follow precise protocols. Missing any of these creates liability and invites fines.
The pitfall it prevents: Compliance violations pile up fast when you’re not paying attention. A driver’s medical card expires. An annual inspection gets missed. Suddenly you’re facing fines or worse—an out-of-service order that parks your truck and kills your income.
What to look for: Some TMS platforms include compliance tracking. If yours doesn’t, you need a separate solution. The FMCSA’s Safety Measurement System tracks carrier safety performance publicly—you want to stay off their radar.
7. Load Board Access
What it does: Connects you with available freight from brokers and shippers. Lets you search for loads by lane, equipment type, and rate.
Why you need it: Unless you have direct customers from day one, load boards are how you find freight. They’re essential for filling empty trucks and building your business.
The pitfall it prevents: New trucking companies often struggle to find consistent freight. They accept low-paying loads out of desperation. They run empty miles because they don’t know what’s available. Load board access opens up opportunities.
What to look for: DAT and Truckstop are the two major load boards. Most carriers use at least one. Some TMS platforms integrate with load boards so you can search and book without switching systems. Axis TMS offers load board integration that streamlines the freight-finding process.
8. Factoring Service or Cash Flow Tool
What it does: Factoring companies purchase your invoices at a discount and pay you immediately. This converts accounts receivable into instant cash.
Why you need it: Brokers and shippers often pay in 30, 60, or even 90 days. But your fuel bill, truck payment, and driver pay are due now. The cash flow gap kills new trucking companies faster than almost anything else.
The pitfall it prevents: Running out of cash while waiting for customers to pay is embarrassingly common. You have loads on the board, revenue on the books, but no money in the bank to buy fuel. Factoring bridges that gap.
What to look for: Compare factoring rates carefully—they vary widely. Understand whether the factor takes recourse (meaning you’re responsible if the customer doesn’t pay). Some TMS platforms integrate with factoring services for smoother operations.
The 10 Biggest Pitfalls That Sink New Trucking Companies
Understanding what goes wrong helps you avoid the same mistakes. Here are the traps that catch most new trucking company owners.
1. Underestimating Startup Costs
The mistake: New owners budget for a truck and insurance, then get blindsided by everything else. Authority fees, permits, ELDs, software subscriptions, fuel deposits, and working capital add up fast.
The reality: Plan for $15,000-30,000 in startup costs beyond your truck purchase, depending on your operation type. Running out of money before you establish cash flow is a death sentence.
How to avoid it: Build a detailed startup budget that includes every line item. Add a 20% cushion for surprises. The Small Business Administration offers resources for creating realistic business plans.
2. Ignoring Cash Flow Management
The mistake: Focusing on revenue instead of cash. Celebrating loads booked while the bank account runs dry.
The reality: You can have $50,000 in receivables and still not be able to buy fuel. Cash flow timing matters more than total revenue, especially in the early months.
How to avoid it: Use factoring initially if needed. Invoice immediately when loads deliver. Track cash flow weekly, not monthly. Your accounting software should show you exactly where you stand.
3. Choosing the Wrong Insurance
The mistake: Shopping purely on price and ending up with inadequate coverage or a carrier that won’t pay claims.
The reality: Trucking insurance is expensive for a reason. One serious accident can generate claims in the millions. Cheap insurance with coverage gaps or slow claims processing can destroy your business.
How to avoid it: Work with an insurance agent who specializes in trucking. Understand exactly what’s covered and what’s excluded. Budget appropriately—insurance is not the place to cut corners.
4. Compliance Failures
The mistake: Treating compliance as an afterthought. Letting driver files get sloppy. Missing inspection deadlines. Ignoring hours of service rules.
The reality: The FMCSA has shut down thousands of carriers for compliance failures. Even if you avoid shutdown, violations tank your safety scores and cost you customers. Brokers check your record before booking loads.
How to avoid it: Set up systems from day one. Use compliance tracking software. Calendar every deadline. Treat compliance as a core business function, not administrative busywork.
5. Poor Record Keeping
The mistake: Throwing receipts in a shoebox. Keeping load information in your head. Failing to document everything.
The reality: You need records for taxes, audits, insurance claims, customer disputes, and legal protection. Reconstructing history months later is impossible and expensive.
How to avoid it: Digitize everything immediately. Use your TMS to store load documents. Keep your accounting software current. Create a system and follow it religiously.
6. Taking Every Load
The mistake: Saying yes to every piece of freight regardless of rate, route, or customer.
The reality: Bad loads cost you money. Rates that don’t cover your costs. Deadhead miles that eat your profit. Customers who pay slow or dispute invoices. Saying no is sometimes the most profitable decision.
How to avoid it: Know your cost per mile. Calculate whether each load actually makes money before accepting it. Be willing to walk away from bad freight.
7. Neglecting Maintenance
The mistake: Skipping preventive maintenance to save money or avoid downtime. Running equipment until it breaks.
The reality: Roadside breakdowns cost far more than scheduled maintenance. Tow bills, emergency repairs, missed loads, and stranded drivers add up fast. Plus, poor maintenance creates safety risks and compliance issues.
How to avoid it: Follow manufacturer maintenance schedules. Track service history in your TMS or maintenance software. Budget for maintenance as an ongoing cost, not an emergency expense.
8. Overextending Too Fast
The mistake: Adding trucks and drivers before you have the freight, systems, and cash flow to support them.
The reality: Growth requires infrastructure. Each additional truck needs consistent loads, driver management, maintenance oversight, and administrative support. Growing without these foundations leads to chaos and losses.
How to avoid it: Master one truck before adding another. Build your systems and customer base first. Grow when you have excess freight, not when you have excess optimism.
9. Driver Management Failures
The mistake: Hiring anyone with a CDL. Failing to verify qualifications. Not addressing performance issues. Treating drivers poorly.
The reality: Your drivers represent your company. Bad drivers damage equipment, alienate customers, and create liability. Good drivers leave companies with poor management. The driver shortage makes retention critical.
How to avoid it: Screen thoroughly before hiring. Maintain complete driver qualification files. Communicate clearly and treat drivers with respect. Use your TMS to track performance and address issues early.
10. No Technology Strategy
The mistake: Trying to run a modern trucking company with paper and spreadsheets. Cobbling together disconnected tools that don’t communicate. Avoiding software because of cost or learning curve.
The reality: Technology isn’t optional anymore. Customers expect visibility. Regulations require electronic logging. Competition demands efficiency. Companies that resist technology get left behind.
How to avoid it: Invest in a proper software stack from day one. Choose tools that integrate with each other. Accept the learning curve as an investment in your future. Platforms like Axis TMS can serve as the foundation of your technology strategy, connecting dispatch, load management, and financial operations in one system.
Building Your Software Stack: A Practical Approach
You don’t need to implement everything at once. Here’s a phased approach that makes sense for most new trucking companies.
Phase 1: Before You Haul Your First Load
Get these in place during your startup process:
- Accounting software – Set up QuickBooks or your chosen platform. Create your chart of accounts. Start tracking expenses from day one.
- ELD – Required before you operate legally. Install it and learn how it works.
- Insurance documentation system – Know where your certificates are and how to provide them quickly.
- Basic TMS or load tracking – Even a simple system beats spreadsheets. Axis TMS offers straightforward setup that gets new carriers operational quickly.
Phase 2: First 90 Days of Operations
Add these as you begin hauling freight:
- Fuel card program – Get this running as soon as you’re buying fuel regularly.
- Load board subscription – Essential for finding freight unless you have guaranteed customers.
- Factoring relationship – Establish this before you desperately need cash. Applications take time.
- GPS tracking – If not included with your ELD, add it for visibility.
Phase 3: Months 3-6
Refine your operations with:
- Full TMS implementation – Move beyond basic features. Use invoicing, reporting, and document management.
- Compliance tracking – Set up systems to monitor all regulatory requirements.
- Integration setup – Connect your TMS with accounting software, ELD, and load boards.
Phase 4: Growth Preparation
Before adding trucks or drivers:
- Scalable systems – Ensure your software can handle growth without major changes.
- Reporting and analytics – Use data to understand your most profitable lanes, customers, and operations.
- Driver management tools – Prepare for managing multiple drivers with settlements, scheduling, and communication features.
Questions to Ask Before Choosing Any Software
Don’t just take vendor promises at face value. Ask these questions before committing:
About functionality:
- Does this do what I need today?
- Will it handle my needs when I have 5 trucks? 10 trucks?
- What features are included versus extra cost?
About integration:
- Does this connect with my other software?
- How does data flow between systems?
- Will I have to enter the same information multiple times?
About support:
- What help is available when I have problems?
- Is support included or extra?
- What are response times like?
About cost:
- What’s the total monthly cost including all fees?
- Are there setup or implementation charges?
- What happens to my data if I cancel?
About the company:
- How long have they been in business?
- Do they specialize in trucking?
- What do other carriers say about them?
The Real Secret to Starting a Trucking Company
Here’s what successful trucking company owners understand that struggling ones don’t: this business is won in the office, not just on the road.
Yes, you need to move freight safely and efficiently. But the companies that survive and grow are the ones that master the operational side. They know their numbers. They stay compliant. They collect their money. They make data-driven decisions.
Software doesn’t drive trucks. But it creates the foundation that lets you build a real business instead of just owning a job.
The owner-operators who treat their operation like a business—with proper systems, accurate records, and professional tools—are the ones who eventually have choices. They can grow if they want. They can sell their business someday. They can take a vacation without everything falling apart.
The ones who wing it, who resist technology, who think they can keep everything in their head—they’re the ones working harder and harder for less and less until they burn out or go broke.
Did You Know?
About 90% of trucking companies have six or fewer trucks. The industry is dominated by small operations, which means the right software can give you competitive advantages against similarly sized carriers.
New trucking companies fail at higher rates than other small businesses. Industry estimates suggest 80-90% don’t survive their first year. Most failures trace back to cash flow problems, compliance issues, or operational chaos—all preventable with proper systems.
The average profit margin in trucking is just 3-5%. That razor-thin margin means small inefficiencies compound into big losses. Software that saves even a few hours per week or prevents a few mistakes per month can significantly impact your bottom line.
Brokers and shippers increasingly require technology capabilities from carriers. Real-time tracking, electronic documentation, and system integration are becoming table stakes. Carriers without these capabilities lose out on freight.
The cost of a single compliance violation often exceeds a year of software subscriptions. A failed audit or serious violation can result in fines of $10,000 or more—plus the indirect costs of damaged reputation and lost business.
Frequently Asked Questions
How much does trucking software cost for a new company?
Basic software costs for a new one-truck operation typically run $200-500 per month total. This includes TMS, accounting software, ELD service, and load board access. Costs increase with fleet size and feature requirements. Some platforms offer startup-friendly pricing that scales with growth.
Can I start a trucking company without a TMS?
Technically yes, but you’re making life much harder. Spreadsheets and manual tracking work briefly, but they become unmanageable quickly. The time you spend on administrative work is time not spent hauling freight or finding customers. Investing in a TMS from the start sets you up for sustainable operations.
What’s the most important software to get first?
An ELD is legally required, so that’s non-negotiable. After that, accounting software and a basic TMS or load management tool should be priorities. You need to track money coming in and going out, and you need to organize your loads. Everything else can come later.
Should I use free software options?
Free tools can work for very basic needs, but they usually lack features, integration, and support. In trucking, where mistakes are expensive and time is money, the cost of inadequate software often exceeds subscription fees. Evaluate free options carefully and understand their limitations.
How do I know if my software is working?
Track metrics like time spent on administrative tasks, billing errors, missed deadlines, and cash flow timing. If you’re spending less time on paperwork, making fewer mistakes, and getting paid faster, your software is working. If you’re still drowning in chaos, something needs to change.
When should I upgrade my software?
Upgrade when your current tools create bottlenecks. Signs include: spending excessive time on manual workarounds, frequently hitting feature limits, inability to integrate with other needed tools, or preparing to add trucks and drivers. Don’t wait until you’re in crisis—plan upgrades proactively.
Taking the First Step
Starting a trucking company is genuinely hard. The barriers are real. The risks are significant. The learning curve is steep.
But thousands of people do it successfully every year. They’re not smarter or luckier than you. They just prepare properly, choose the right tools, and treat their operation like a real business from day one.
The software decisions you make now will shape your company for years. Choose tools that work together. Invest in platforms that can grow with you. Take the time to learn them properly.
And when things get hard—because they will—remember that every successful trucking company owner stood exactly where you’re standing now. They figured it out. You can too.
The road is open. Time to hit it.