Bookkeeping for trucking companies involves detailed tracking of various financial transactions, including managing shipper packets, freight invoices, and billing, as well as maintaining carrier profiles and client accounts. For trucking company owners, handling the finances for multiple shipments and transactions at any given time can quickly become overwhelming.
This is where Trucking Management Software (TMS) becomes invaluable. TMS is a specialized tool designed to streamline the financial and operational aspects of running a trucking business. By automating tasks such as billing and invoice tracking, TMS minimizes manual entry and reduces errors.
Here’s a closer look at how TMS can transform your bookkeeping:
Group Invoicing with TMS
TMS offers a feature that allows trucking companies to create invoices for several deliveries or customers at once with a single click. This method is much faster and reduces errors compared to creating each invoice separately. It speeds up the invoicing process and ensures every bill is consistent.
Integration with Factoring Companies
TMS connects smoothly with factoring companies. These companies buy the invoices from trucking businesses, giving them cash right away. This is helpful for trucking companies because they don’t have to wait for customers to pay. Small and medium-sized companies find this feature particularly useful as it helps them keep a steady flow of cash.
Central Invoice Management
Managing which invoices have been paid and which haven’t can be challenging. TMS simplifies this by putting all the invoice information in one place. This way, trucking companies can quickly see which invoices need attention. Keeping all invoice details together helps ensure no payment is missed.
Document Management
Sometimes invoices are incomplete because a document is missing. TMS solves this problem by providing a place to add and check all required documents. This ensures the invoicing process is complete and accurate, saving time and reducing the chance of financial errors.
Simplifying Invoice and Bill Creation
TMS makes it easy to create invoices and bills of lading, which are necessary for shipping. The system is designed for the trucking industry’s specific needs, making it straightforward to generate these documents. This streamlines billing and ensures financial transactions are recorded correctly.
Monthly Check-ups with Reconciliation
You can also connect a TMS with QuickBooks to match your records with your company’s bank statements. This step, known as reconciliation, helps you spot any odd differences early, ensuring your financial data is accurate and trustworthy.
Calculating Cost-Per-Mile
Cost-per-mile is the gauge that shows how well your trucking business is running. A TMS can help you calculate this by dividing your monthly costs by the miles driven. This metric helps price your services for profit and spot areas where you can cut costs to boost your bottom line.
Maintaining a Detailed Logbook
Embrace the power of a logbook to keep your trucker finances streamlined. A TMS helps you maintain a digital logbook that details your total miles driven, hours on the road, truck number, and other details. This acts as a foundational record for safekeeping all financial statements.
Additional Best Practices to Consider
Aside from the tips above, A TMS can streamline bookkeeping by:
- Simplifying Fuel and IFTA Reporting: Maintain a streamlined approach to fuel purchases and IFTA fuel reporting. Using a single fuel card and an efficient ELD system can minimize bookkeeping complexities and ensure accurate mileage and fuel usage tracking for IFTA filings.
- Managing Assets Accurately: When you buy or lease trucks and equipment, record them as assets on your books. Also, track the depreciation of vehicles and the split between interest and principal on loans. This method ensures you capitalize on the correct tax deductions for depreciation and loan interest.
Conclusion
Efficient bookkeeping is crucial for trucking pros looking to streamline their finances and keep their operations running smoothly. Consider adopting user-friendly TMS software, staying diligent with expense tracking, and regularly reviewing financial reports to steer clear of financial potholes. With these practices in place, you’ll ensure your business finances are trucking along nicely.
