Good morning folks ☕️
Been helping some owners by reviewing and doing sort of what could considerd a bit an unofficial audit of the truck owners expenses, P&L and deduction breakouts.
Searching for answers that often escapes our biased views of the situation. Looking for opportunities missed so as not to miss future opportunities.
Trucking companies could benefit by helping their lease operators strive for achievable profits not just gross earnings.
How long will you retain an owner who isn't profitable enough to match at minimum thrur needs at home?
Because the industry has promoted the things that most benefit the companies owners drove for and may now be leased to. # 1 the companies gross receivables that feed your 1099 the maxing out miles driven and HOS used.
You do need a trusted income tax service!
Some of these truck owners use the oft promoted tax accounting services.
These are build on the platform used by CPA accounting and data for tax preparation.
Tax information isn’t the same as the information a truck owner needs to make the best decisions for business operations.
For example most don’t return our information for often months after you’ve done the work.
Most aren’t including the per diem within the list of expenses. Per diem cost can easily be $0.15 - $0.18 per mile.
They put this in later as a deduction but not an operating expense.
Just like depreciation vs your truck payment if your purchasing. Truck loan payments are not the deduction the interest/finance expense is your tax deduction.
Your payments are a cash flow expense.
Also remember that escrow deductions for your settlements are not an expense until you use to purchase a deductible expense.
And not using a payroll to pay oneself can prove out to be very expensive.
The biggest reason I’m saying this is simply because if you ask owners what it cost for their business to haul freight?
The majority of small owners do not include paying themselves.
Paying yourself realistically cost your business $0.70-$0.90 per mile.
Recognize you need financial information not just tax accounting to make your best decisions.
* Goal #1 •••• what is it?
Gary how can I help you reset or catch-up?
Text 309-830-1264
Email Gary@truckbizcoach.com
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