3 Tax Tips Trucking Companies Should Heed | FBC, Canada's Farm & Small Business Tax Specialist

3 Tax Tips Trucking Companies Should Heed

One industry where organizational skills are critical is trucking.

According to the latest data from Statistics Canada, there are 227,000 truck drivers in the country. With it predominantly male drivers, it makes trucking Canada's top occupation among men.

Without good organization, Canada's hundreds of thousands of commercial truck driving professionals would have an exceedingly hard time keeping track of what products go where and what routes to take, as the average trucker logs millions of miles in a typical year.

With all the rules and regulations it's crucial for truckers, especially owner/operators, to be organized when it comes to paperwork. This is especially true when it comes to financial records and bookkeeping, because before you know it, tax season will be upon us.

Here are a few basic tips from Trucknews.com to help you and your company ensure you're sufficiently organized with tax time just around the corner:

1. Make Accurate Record Keeping a Priority

In the past year, you've probably gone through a countless number of bills, invoices, statement and receipts. All of them are important to keep track of, but some are more key than others.

Trucknews.com suggested that the best way to keep accurate records is by getting several boxes or envelopes, labeling each with a month of the year. Then place the documents into each container according to when the transaction was done.

2. Understand What Tax Deductions Can Be Taken Out

No one likes to have to pay the government taxes at the end of year. Fortunately, there are a number of tax deductions that you may be able to take advantage of. Be sure to speak with a tax professional who has the knowledge of what business expenses can be written off to reduce your company's overall tax burden.

3. Accurately Classify Workers

There are usually two types of workers that a business may have: an employee and an independent contractor.

While there are a variety of difference between the two, the main one is that independent contractors can operate outside the direct control of the company they work for. An employee, meanwhile answers to a supervisor.

In other words the employer has more control over what an employee does because the company provides the equipment needed to work. Make sure you know these differences, as this can also affect what you owe in taxes.

For more tips, be sure to speak to a FBC tax professional.

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