10 Bookkeeping Tips for Truckers: The Basics

Being organized and thorough in tracking and retaining receipts is crucial for maintaining accurate business and financial records—whether you hire trucking bookkeeping services or not. 

Top 10 tips for owner-operator bookkeeping

By following these 10 simple practices, you can simplify the accounting and bookkeeping for your trucking company, leading to higher earnings and less hassle.

1. Save every receipt (even for small purchases)

You want to be able to deduct as many legitimate costs as possible. Keep an envelope in your truck for collecting receipts, or use the dedicated folders on your computer or in a cloud for e-receipts. Use this information to track your monthly profit-and-loss statements and accurate quarterly tax estimates.

Scanned images of receipts are acceptable, but be sure to keep the original paper copies for any big-ticket items you purchase, as they may be needed for warranty purposes.

2. Open a separate checking account for your trucking business

As a self-employed truck driver, it’s important to keep your personal and business expenses separate. Deposit business checks into your business account, then pay yourself from that account. This makes it much easier to track and separate your business expenses.

3. Use a separate credit card for personal and business expenses

Research credit cards available for trucking industry professionals. 

Look for things like:

• Cash back on on purchases
• No annual fees
• Fuel cards that simplify accounting and offer advanced security

Pay the balance in full every month to avoid racking up additional business debt. 

4. Save all of your logbooks

Your logbook and/or electronic log devices (ELDs) are your best proof of entitlement to per diem expenses and record of your drive time, breaks, and miles driven. You will need this information for inspections, too.

The best ELDs can record and report the following:

• Engine power and speed
• Fuel status
• Whether or not your vehicle is in motion
• Harsh braking and collisions
• Mileage
• Engine running time
• Your identification as the authorized driver
• Duty status (on-duty or off-duty)

5. Keep a running tally

For accurate bookkeeping, trucking companies must track the date, location, amount, and reason for each expense to meet tax obligations and comply with IRS regulations.

Document all expenses and time spent on your business operations on your computer or smartphone to cross-reference the receipts you have or any you can’t obtain. This includes things like washing your truck at a coin-operated facility or recording mileage for business use of your personal vehicle. Provide a monthly record and any other receipts to your business services provider or tax accountant if applicable.

6. Save your records

You must keep all records used to prepare your tax return for three years from the date you filed the return. You should also keep all IRS quarterly estimated tax payments, monthly profit and loss statements, insurance documentation, maintenance records, warranty information (which should be available immediately to keep your truck on the road), registration information, bank statements, trucking business credit card statements, and canceled checks.

7. Use trucking accounting software

Trucking bookkeeping and tax preparation are easier if you use consistent accounting systems and practices. Most trucking businesses use either a cash-based or accrual-based accounting method.

With cash-based accounting, you record income only when you receive payment and expenses only when you pay bills. This is the most straightforward system to ensure you keep track of everything accurately.

With an accrual-based system, you record revenue when it’s earned (before you receive payment) and expenses when they’re incurred (before you pay them). Each month, you reconcile accounts to ensure they match up accurately.

8. Review your finances frequently

Electronic invoicing and payments make sending and paying bills and getting paid simpler and faster. You no longer have to wait for a physical check to cash. Keep an eye on the money going in and out of your bank account to ensure you are getting paid what you’re owed.

Check expenses to your bank accounts to make sure they are legitimate expenses, especially if you’re not the only one with access to the account.

If there is a discrepancy, you want to catch it quickly before it becomes a bigger problem for your trucking business.

9. Do a month-end close

A best practice for bookkeeping for truckers is to make sure you close out each month by making sure you have all of your documentation, it matches your records, and you can tie revenue and expenses accurately to the balance at the end of the month.

10. Make sure your books are audit-proof

One in 25 owner-operators faces an IRS tax audit annually, with state audits also possible. 

To avoid scrutiny, maintain separate personal and business accounts for clear tracking.

If audited, ensure:

• Documented and organized financial records.
• Accurate mileage and expense logs.
• Properly reported income and deductions.
• Compliance with tax regulations and receipts for expenses.

How to simplify recordkeeping

To simplify your recordkeeping as an owner-operator, whether you use paper or electronic methods, consider the following approach:

Organize with an Expanding File Folder

• Purchase an expanding file folder and label the pockets for different expense and income categories (e.g., maintenance, fuel, meals, equipment).
• Drop receipts into the corresponding pocket as you receive them to prevent accumulation.

Daily Maintenance

• Make a habit of filing receipts daily to avoid a backlog.

Monthly Consolidation

• At the end of each month, total up the receipts in each pocket.

Utilize a Desktop Calculator

• Label the calculator’s register tape with the month and year.
• Staple the tape to the corresponding stack of receipts to keep everything organized.

Odometer Tracking

• Note your odometer reading at the beginning of each month to track your true cost per mile.
• Record odometer readings at the start of each new load for more precise cost per mile calculations.

This straightforward system ensures your income, expenses, profit and loss reports, and taxes are well-organized and ready for quarterly or annual reporting. Whether you choose paper-based or electronic recordkeeping, consistency and accuracy are key to managing your business effectively.

Use trucking management software (TMS) to help with bookkeeping.

Trucking bookkeeping doesn’t have to be complicated. Trucking management software (TMS) can help you keep track of everything easily. You can handle most tasks in the comfort of your cab using a smartphone, tablet, or laptop.

A TMS helps with:

• Storing data for IFTA. The International Fuel Tax Agreement (IFTA) is much easier to calculate for drivers that cross state lines. A TMS will automatically organize fleet miles and fuel by state. You input the data, and the platform does the math for you.
• IFTA mileage prep. When you enter a route into the system, it will automatically compute the miles per state for IFTA and the International Registration Plan (IRP) that requires license fees for certain jurisdictions.
• Managing invoices. Your TMS can also help you keep your cash flow in order by reminding you when payments are due or when to process invoices.

Owner-operators and truck drivers looking to grow their business and simplify bookkeeping will benefit from Truckstop TMS for carriers. It’s more than just a trucking accounting system. Save time by letting ITS Dispatch manage the paperwork for you. Contact us today to get a free demo.