Sacramento Accounting Services for Trucking Companies
The Sacramento trucking company accountants at Cook CPA Group can help if you are facing financial difficulties with your trucking company. Call today.
The trucking industry has proven to be incredibly profitable, especially in the Sacramento region of California. This reality is mostly due to the high demand for goods transportation. However, the more useful the trucking market becomes, the harder it is to compete in it. This is especially true for individuals who own a small or mid-size truck fleet. Managing and taking care of a trucking company’s finances can consume time better spent on other priorities – while creating lots of unnecessary stress. Without the support of a professional tax and accounting service for trucking companies, you will likely encounter more problems than solutions. If you are facing financial difficulties with your trucking company, or simply want to overhaul your accounting systems for better efficiency, let our Sacramento accounting firm help.
What Does it Cost to Operate a Trucking Company?There are specific expenses that trucking companies should take into account when planning a budget or creating a trucking business plan. These expenses and how they are managed can dictate the way a trucking company operates and develops – grows or fails. If you are starting a trucking business, or are thinking about overhauling your business plan, here are some major operational costs to keep in mind:
- Fuel: Fuel represents one of the highest costs for trucking companies. Whether you have a mid-sized or small truck fleet, fuel can skyrocket your operational costs. It becomes a more significant problem if you don’t keep a close look at the fuel pricing, management, and routings. One of the best ways to keep your fueling costs in check is prioritizing your delivery and transportation routes as these will impact the rate at which a truck consumes fuel. You also need to keep fuel taxes in mind. California recently increased fuel taxes under the Road Repair and Accountability Act of 2017.
- Maintenance: Ideally, you’d want your operation to run smoothly year-round. However, this is not always the case. When least expected, trucks can break down. Things like faulty brakes, worn-out tires, and engine problems can add up to hefty operational expenses. Budgeting for these scenarios can better prepare your business financially for when the unexpected happens.
- Insurance: Insurance coverage is a vital element of any trucking company. Your need for different types of insurance, like “bobtail” insurance and general liability insurance, will also determine your operational costs.
- Payroll: Besides the discussed operational costs, paying your drivers is another crucial part of your business. However, payroll compliance is more complex than simply issuing payments. For example, you will need to determine whether workers should be classified as employees or independent contractors. Then, you will need to collect, remit, and match various employment taxes accordingly.
- Other Costs: There are more costs associated with running a trucking company. Factors like food, lodging for truck drivers (when necessary), and tolling, among others, can significantly increase a truck company’s expenses.