Settlement statements are the source document
If you lease onto a carrier, you receive settlement statements that show gross pay, deductions for fuel advances, insurance, escrow and other charges. Record the gross revenue and each deduction, rather than the net deposit. Escrow or reserve funds held by the carrier are an asset until returned. If you haul under your own authority, record each load invoice and the broker's payment separately.
Factoring and quick-pay fees
A factoring company advances cash against your invoices, charging a fee. Record the full invoice as revenue, then the fee as a financing expense. Reserve amounts held back are receivables. Make sure your books do not double count the invoice once as a sale and again when the factor deposits money.
Track costs per truck
Use classes or tracking for each unit. Fuel, maintenance, tires, tolls, permits, insurance and truck payments all roll up by truck, so you can calculate cost per mile. Fuel cards produce an itemized statement, which is better than the bank line. IFTA fuel tax reports depend on miles and gallons by jurisdiction, so keep trip records alongside the books. Check current filing rules with your base jurisdiction.
Per diem and travel
Drivers who are away overnight may be able to claim special meal rules, with their own limits that change over time. Do not assume the rules, because employees and owner-operators are treated differently. A CPA familiar with transportation can explain what you can use. Keep a log of days away from home and receipts for lodging and showers.
Equipment, loans and fixed costs
Truck and trailer purchases are capitalized and depreciated, and larger deductions in the first year may be allowed depending on current law. Record loan interest separately from principal. Insurance, base plate fees and the heavy highway use tax are periodic costs worth putting on a calendar. Hold back money for taxes from each settlement, especially for self-employment tax, because no one is withholding it.
Maintenance reserves and cost per mile
Set aside money for tires, major repairs and downtime. A reserve account does not change your tax picture, but it keeps a single repair from wrecking your cash. Track every repair with the unit number, date and mileage so you can tell whether an older truck has become more expensive than a payment on a newer one.
Cost per mile is the number that drives good decisions. Add fuel, maintenance, insurance, truck payment, permits, tolls and your own pay, then divide by total miles driven, including empty miles. Compare it to the rate per mile on offered loads. Without this figure you can stay busy and still lose money on every haul.
Keep driver qualification files, inspection reports, permits and insurance certificates in a dated folder. Registration, heavy-use tax and authority renewals can each carry fees that arrive once a year. A calendar for them prevents penalties and lost days of work.
Common questions
Should I keep a separate account for my truck?
Yes. A dedicated business account and card keep fuel, repair and payment records clean.
Do I need a CPA who knows trucking?
It helps a great deal. Rules on depreciation, per diem, and fuel taxes are specific to the industry.
This guide is general information, not tax, legal or accounting advice. Rules, fees and due dates change; check with the IRS, the NJ Division of Taxation or a licensed professional for your situation.