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Accounting For Truckers In USA

FAS CPA & Consultants

What is a CPA for truckers?

The trucking rules differ from most other industries. For example, truckers can deduct a per diem allowance daily while on the road. However, truckers have to pay taxes on their weight, which is deducted from a credit card when crossing state lines. In addition, truckers pay unique expenses for fuel, maintenance, and repairs. These amounts must be correctly classified.

  • Any repairs above $2,000 must be depreciated unless the accounting policy for the enterprise expressly allows more significant amounts.
  • Errors are expensive, and the IRS will come after truckers who do not pay their taxes accurately.

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Financial Management For Truckers

  • In many respects, financial management for truckers is like any other industry. The administration will form a company, open bank accounts, classify transactions, and do the books.
  • More typically, at the year-end, management will provide the bookkeepers with a summary of all their mileage for the year. The figures will be compared with the mileage and figures in the books.
  • Another example is money spent on meals on the road. Sometimes the actual amounts are lower than the per diem allowance of $59 per day on the road. Hence, the per diem amount must be expressed yearly.
  • Also, many truckers prefer not to take a salary because they have to report withdrawals and pay self-employment taxes. This can best be remedied by setting up a payroll run and earning a bi-weekly or monthly paycheck. This minimizes any issues with the IRS at year-end.

Bookkeeping For Truckers

Bookkeeping includes record keeping, accounting, tax preparation, and filing to the IRS. For truckers, it means keeping the books for the trucking enterprise, pulling all transactions from the bank statements, and updating the books monthly and yearly to create the annual financial statements and profit and loss accounts.

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Advantages Of Using A CPA That Specializes In Trucking

The main benefit is saving money. In addition, a specialist CPA will prevent the accumulation of IRS and tax debts. For example, when a trucker does not collect a salary, no payroll taxes are paid to the IRS. However, this becomes problematic at year-end, and a fifteen percent penalty can be charged. Having a specialist expert on board to deal with these problems will save your enterprise a great deal of money. With the help of a specialist CPA, your books will be clear and up to date at the end of the year.

Readers should note that this article is only intended to convey general information on these issues and that FAS CPA & Consultants (FAS) in no way intends for the contents of this article to be construed as accounting, business, financial, investment, legal, tax, or other professional advice or services. This article cannot serve as a substitute for such professional services or advice. Any decision or action that may affect the reader’s business should not rely solely on the contents of this article, but should rather be consulted on with a qualified professional adviser. FAS shall not be responsible for any loss sustained by any person who relies on this presentation. This article is subject to change at any time and for any reason.

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