Every company has expenses that they have to keep track of. While the nature of them depends on the business, many of them are quite significant.
Though major expenses can require additional capital to pay off, to a certain extent, they can often be easier to maintain records for because they're so significant and often necessitate all available resources.
Then there are small costs such as meal expenses. Though seemingly insignificant, they can quickly add up over time, especially when they're not noted, causing headaches for business owners trying to figure out how to make their company more profitable.
Perhaps nowhere are these small expenses more common than in the trucking industry. Because of the nature of the job, fleet owners have to be very careful with how they allocate the company's earnings that help pay for necessary services without comprising their profit margin.
Here are a few ways that you and your drivers can keep track of those everyday expenses that can ultimately be the difference between a profitable or loss-making year.
1. Write Down Expenses Immediately
As soon as you or a company driver pays for something, make sure that it's recorded right away, referencing the date, what the expenses were for and how much was spent. This guarantees that the payment won't be forgotten, as is often the case when people have other things on their minds.
2. Invest in Computer Software
The widespread use of mobile devices has helped revolutionize computer software, where businesses no longer have to download programs onto their computers but applications on to their tablets or laptops.
Either way, take a look at the multitude of expense software available online or at brick-and-mortar retailers. Customer reviews can help you decide which one is best for the company, but you can also talk to an FBC tax professional to get their opinion.
3. Hang On to All Receipts
Tax experts recommend that buyers always hang on to their receipts after a major purchase.
Small expenses should get the same attention, as this is a key aspect of documentation and record keeping.
What filing system you use is up to you, just be sure that it can be easily retrieved. Common receipts that fleet owners keep on file include gas bills, and invoices for lodging and meals.