Accounting For Truckers In USA
What is a CPA for truckers?
Is the CPA who specializes and holds clients in the Truckers industry, they are a little different than restaurant or retails because they have a per diem allowance that they are allowed to deduct every day when they are driving. In addition, truckers pay whenever they enter a new state, they have to pay taxes for the weight and that has to be deducted from a credit card. They have specific expenses for gas and repairs that need to be correctly classified. Just to give you an example, the expense over $2000 for trucker repairs will have to be depreciated unless the trucker company has an accounting policy that allows a larger amount. These particularities are extremely important, there is also the need that truckers must have their books correctly stated because what we have seen sometimes, truckers when they don’t pay taxes the IRS comes after them and they have a problem. So, in our case the CPA needs to be ahead of that problem.
How do accountants manage for truckers?
The management for truckers accounting is similar to other businesses when the particularities mentioned, like forming the company and opening the bank account and from there we’ll be able to classify the transactions and do the books of the company. At the end of the year, the truckers will give us the summary of all the trips during the year and we’ll do a comparison with the amounts in the books. Second, the amount that they expend in entertainment sometimes is lower than the per diem amount so when the per diem amount $59 times the number of days stayed on the road is higher than the entertainment one in the books then we have to take the per diem amount in a yearly basis. This are the particulars for the truckers, in addition to that many truckers don’t pay salaries to themselves and they have to report withdrawals and have to pay self-employment, so to prevent all this we advise clients to set up a payroll and receive a salary in a bi weekly o monthly basis automatically and then pay taxes so they don’t have any headaches at the end of the year with the IRS.
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What is bookkeeping for truckers?
This is keeping of the books for the truckers, this is the accounting and also the taxation when the tax return is completed. But for the bookkeeping is strictly keeping the books of the trucking company, getting the transactions from the bank statements and then updating the books in a monthly basis or yearly basis with the objective of producing the financial statements at the end of the year, like profit and loss and balance sheets.
What are the benefits of having a CPA specialized in truckers?
The benefits are preventing the company from accumulating IRS debt or Tax debt. The thing that we mentioned before, many times truckers don’t have salaries so this creates a problem because at the end of the year there are no payroll paid to the IRS and this taxes will be paid at the end of the year with a surplus of 15% so having a CPA that is able to solve this problem is critical because will help the company prevent the accumulating of debt for not paying the payroll taxes and second having a clear picture of the transactions 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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