Trucking Company CPA Columbus Ohio
Simplify your trucking business accounting practices, optimize profitability, streamline tax procedures, and facilitate scaling up.
Trucking CPA Services
The profession of commercial trucking is demanding. Without accurate information, fleet companies and owner-operators can easily get lost. Managing the accounting and tax aspects of commercial trucking can be equally complicated, and you may end up with a substantial tax liability without the right firm providing accurate insights and data to help you minimize it.
- We will handle the entire process of accounting, from integrating Quickbooks with your bank account(s), maintaining your chart of accounts, and managing your expenses and taxes.
- We will proactively advise you on the best ways to get tax deductions.
- By utilizing our comprehensive accounting techniques, you will be equipped with valuable data that can facilitate making informed business decisions. This will enable you to navigate strategic choices with ease, such as determining the number of vehicles to purchase or lease.
- Our extensive understanding of accounting principles specific to the trucking industry will enable us to provide you with a precise analysis of your profits, margins, and other vital metrics. This will empower you to utilize your resources strategically and scale up your trucking business.
Managing your Trucking Company finances with Hogan CPA, a QuickBooks ProAdvisor
By integrating Quickbooks with your banking platform, you can reduce the tedium of data entry and minimize the occurrence of manual errors. Additionally, Quickbooks can simplify your profit-tracking process by allowing you to monitor payments and expenses such as fuel costs and insurance fees. As a result, you will be able to answer critical questions such as:
- How much should you charge your customers to become profitable?
- How much are you spending on equipment rental?
- How much are you making after lumper fees, insurance fees, fuel costs, and on-the-road expenses?
- Our services can assist in estimating tax liabilities for quarterly estimates, selecting the appropriate entity for your business, and managing both tax preparation and planning.
2. Trucker Tax Planning and Management
The complex revenue and expense streams of a trucking company make calculating taxes a challenging task. Different services such as short-haul, long-haul, LTL, FTL, and intermodal transport may have varying rates and pricing structures. A few of the tax deductions that you may be eligible to claim are:
- Driver salaries and retirement benefits
- Business insurance & Health Insurance
- CDL licenses and IRP plate fees
- Vehicle maintenance, repairs, and fuel
- 2290 taxes
- Rent of equipment and truck supplies
- Professional fees, continuing education for drivers, and training
- Office expenses – includes rent, utilities, office supplies, and cell phone
- Meals and lodging expenses while away from home
Additionally, you can save on taxes with the strategy for forming a business entity. You can start as a single-owner LLC and later move into a different entity when applicable. LLCs protect assets, have the flexibility to choose their tax election, and have less stringent record-keeping requirements which can make accounting and tax preparation simpler.
A common choice for trucking businesses is to have their LLC taxed as an S-Corporation which makes individuals responsible for paying income taxes while on payroll in their own business but self-employment taxes, that are taxed at a higher rate, are reduced.
3. Why Choose a CPA Specializing in the Trucking Industry?
Accounting for a trucking company requires specialized knowledge and expertise to accurately track, measure, and report the company’s financial performance. The unique characteristics of the trucking industry make it more complex than accounting for other businesses. Some of the unique accounting challenges include:
Depreciation of assets:
Trucking companies rely heavily on assets such as trucks, trailers, and other equipment that depreciate over time, which requires accurate tracking and management to ensure financial statements accurately reflect the value of these assets.
Cash flow management:
Due to the high volume of transactions and the time it can take for invoices to be paid, cash flow management can be a challenge for trucking companies, making it important to closely monitor accounts receivable and payable.
Driver pay and benefits:
Trucking companies need to accurately track and manage driver pay and benefits, including hourly wages, mileage pay, per diem expenses, and benefits such as health insurance and retirement plans.
Compliance and regulations:
The trucking industry is subject to numerous regulations and compliance requirements, such as Hours of Service rules and safety regulations, which can impact accounting practices.
Insurance and risk management:
Trucking companies require insurance coverage to protect against liability and risk, and managing these policies and premiums can be complex.
Integration with other systems:
Trucking companies often use specialized software for fleet management, dispatch, and other operations, which can to be integrated with accounting systems like Quickbooks to ensure accurate financial reporting.
Regulations and Compliance:
The trucking industry is highly regulated, and trucking companies must comply with various federal, state, and local regulations. Accounting for compliance-related expenses and taxes can be complex and time-consuming.
Trucking is an industry with many variable costs. Fuel prices, maintenance costs, and driver wages can fluctuate significantly, making budgeting and forecasting challenging.
A specialist is well-equipped to deal with the nuances of the unique challenges of the trucking industry. If you do not hire a specialist, you can miss out on not-so-obvious tax deductions, have discrepancies on your chart of accounts, and
Trucking Company Accounting Services with Hogan CPA
At Hogan CPA Financial Services, we can assist you in saving your valuable time by taking care of all your accounting, tax planning, and tax management needs. This will enable you to concentrate on what you excel at – expanding your trucking enterprise. As a result, you will have more time for marketing and spending with your loved ones.
Trucking Company Accounting Services and Multi-state Tax Compliance
As an owner-operator, you are expected to keep an up-to-date record of income and expenses and comply with the taxes of the states in which you operate. Our multi-state tax compliance service is tailored for owner-operators, helping them navigate complex tax regulations across different states. From tax planning to filing, we ensure compliance and help you save money on taxes.
Nexus refers to the connection between a business and a state that triggers the obligation to collect and remit state taxes. The nexus can be created by various factors, such as physical presence or the number of trips made to a particular state. Owner-operators need to determine if they have nexus in each state where they operate.
Apportionment is the process of dividing a business's income and expenses among the states where it operates, based on factors such as miles driven, revenue generated, or payroll. Owner-operators need to determine the proper apportionment method for each state where they have nexus.
State tax registrations
Owner-operators need to register with each state where they have nexus for tax purposes. This includes obtaining a state tax identification number, filing periodic tax returns, and paying state taxes.
Tax exemptions and credits
Owner-operators may be eligible for tax exemptions or credits in some states. For example, some states offer a fuel tax exemption for interstate carriers or a sales tax exemption for equipment purchases.
How we help trucking CPA
Let us help you strategize for taxes and free up your time by taking repetitive tasks like bookkeeping off your plate.
What our trucking CPA clients are saying
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We can assist you in growing and expanding your trucking business. Speak directly with our trucking company accountants to explore how we can provide better support for your tax and accounting needs. Whether it’s tax planning or other financial services, we’re here to help. Click the button below to call us or fill out our form to request an appointment via email, and we’ll arrange a time that suits your schedule.
See our Frequently Asked Questions below for commonly asked questions about our trucking CPA services.
Trucking CPA FAQs
The IRS allows trucking companies to depreciate their tractors using the Modified Accelerated Cost Recovery System (MACRS). Under MACRS, the company can claim a percentage of the tractor’s cost each year as a depreciation expense on their tax returns.
The IRS publishes a depreciation schedule that provides the percentage of the tractor’s cost that can be depreciated each year based on its useful life. The useful life is determined by the IRS based on the asset’s class. Tractors generally fall under the seven-year recovery period class, which means they can be depreciated over seven years.
Trucking companies can choose to use either the General Depreciation System (GDS) or the Alternative Depreciation System (ADS) under MACRS. The GDS uses the 200% declining balance method with a half-year convention, while the ADS uses the straight-line method with a mid-month convention.
It’s important to note that depreciation deductions reduce the company’s taxable income, which can result in tax savings. However, the depreciation method chosen can affect the amount of depreciation expense and tax savings the company can claim. It’s recommended that trucking companies consult with a tax professional to determine the best depreciation method for their business.
Trucking companies typically need to file quarterly and annual tax forms such as Form 941, Form 940, and Form 1120 or Form 1120-S.
If you lease a truck, the lease payments are generally tax deductible as a business expense. If you own a truck, you may be able to deduct the cost of the truck (through depreciation) over a period of years. However, the tax benefits of owning a truck may be reduced if you finance the purchase with a loan, as interest payments are not fully deductible for business purposes.
For tax purposes, the Internal Revenue Service (IRS) allows owner-operators to deduct a portion of their meal and incidental expenses (M&IE) from their taxable income. The current per diem rates set by the IRS for the continental United States is $66 per day for travel between October 1, 2022 through September 30, 2023. Of this amount, $61 is allotted for M&IE, while $5 is allotted for incidental expenses.
It is important to note that owner-operators should keep detailed records of their expenses, including receipts and documentation of the purpose and location of each trip.
Certainly! If non-CDL riders engage in other tasks associated with your business operations, they can claim a deduction of 50% of the $69 per diem rate, which amounts to $34.50 per day. Some of these tasks include bookkeeping and loading/unloading.
Yes. Often, trainers are left to cover the cost of providing meals to their students while on the road, and you may be eligible to claim this expense as a deduction.
On many occasions, your beloved pet can be considered as a security measure for your truck. If your dog satisfies the criteria, you may be able to claim expenses such as veterinary care, pet food, and more.