Chart of Accounts Examples, Template, and Tips

sample chart of accounts for trucking company

While it takes the work out of many calculations, it does not offer many of the automatic entry and reporting functions provided by other software. These include Quickbooks for accounting and Motive for service hour tracking. Invoices can be auto-generated, fuel card data can be imported directly from any major provider, and taxes (including IFTA) can be calculated. One of the most useful features of TruckLogic is its integration with other trucking industry tools. These include Motive, DAT, ProMiles, Quickbooks, ExpressTruckTax, and ExpressIFTA.

Naturally, items like accounts payable, invoices payable, interest payable, accrued liabilities, sales tax payable, and other current liabilities fall within this list. That’s what your company faces without a well-organized chart of accounts. It’s like wandering through a complex and sprawling city in search of a financial needle in a haystack. For starters, your accounting data can quickly become unreliable and outdated, which is an especially poor turn of events when timely insights are essential. This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation.

Accounting for Trucking Business

While these do the job, they are prone to errors – the good news is technology can help. When we speak of a chart in the accounting context, we usually mean the arrangement or layout of different accounts within a general ledger. In accounting, the term accounts doesn’t solely refer to bank accounts where individuals store money. Executing proper transportation accounting procedures requires as much training and expertise as the transporting itself.

  • But you don’t need to be a magician with your finances to run a successful business.
  • Meanwhile, accounting refers to refining and using the financial records created through bookkeeping for various purposes; including the development of financial statements, cash flow analysis, and tax planning.
  • For instance, Tailwind’s Unlimited package enables tracking an unlimited number of shipments per month.
  • While Quickbooks can be used for trucking companies, some trucking-specific features are missing such as cost-per-mile calculations and IFTA reporting.
  • Obviously, that makes your chart of accounts essential to a host of different people and groups, from your decision-makers and stakeholders to potential investors and lenders.

These accounts and subaccounts are located in the COA, along with their balances. Your accounting software should come with a standard COA, but it’s up to you and your bookkeeper or accountant to keep it organized. Here are tips for how to do this, plus details about what a COA is, examples of a COA and more.

Sample Chart of Accounts for a Small Company

Tailwind TMS provides a full range of invoicing and bill payment features. It’s an ideal solution for businesses needing a comprehensive trucking management system. It does not include payroll or bank reconciliation but can integrate with Quickbooks to give a complete accounting service. bookkeeping software General accounting software is typically the cheapest, followed by trucking-specific accounting software. Depending on the provider, most companies can find software that costs $5 to $25 per month. Accounting comes in when you need to analyze your business based on financial data.

sample chart of accounts for trucking company

The expense accounts category captures all of the money you spend generating revenues for your company – advertising expenses, employee benefits, office supplies expenses, rent, utilities, and endless more. And like their counterpart in operating revenues, these expenses tie directly to the products or services that generate revenue for your company. To better understand the balance sheet and other relevant financial statements, you need to first understand the components that make up a chart of accounts.

Preparing business packages for distribution

First, change your company accounting preference to use class tracking for transactions. Assign customer invoices for hauls using that unit, along with any bills for expenses directly relating to that specific unit, to the unit’s class in the transaction input screen. Trucking accounting software helps automate tasks a bookkeeper or accountant would normally handle such as invoicing, expense and mileage tracking, payroll, tax compliance, and financial reporting.

sample chart of accounts for trucking company

Accounting software allowed for greater flexibility, customization, and efficiency in managing financial data. In the trucking industry, there is a major paradox when it comes to trying to make money without turning around and spending it all on necessary expenses. Let’s not forget about gas expenses, either; even if the price of gas is being charged to the client, those charges should be recorded as a Cost of Goods Sold account. Preparing a variable/fixed income statement allows you to perform a contribution margin analysis. After being acquainted with the variable/fixed cost statement, you will come to understand how important it is to control variable costs.

ProTransport‍‍‍ Great TMS with Accounting

Note that each account is assigned a three-digit number followed by the account name. The first digit of the number signifies if it is an asset, liability, etc. For example, if the first digit is a “1” it is an asset, if the first digit is a “3” it is a revenue account, etc. The company decided to include a column to indicate whether a debit or credit will increase the amount in the account. This sample chart of accounts also includes a column containing a description of each account in order to assist in the selection of the most appropriate account. Though most accounting software products set you up with a standard COA or let you import your own, it’s a good idea to have an accountant scan it and add any other accounts that are specific to your business.

Use the most up-to-date accounting software for your transport company

This gives you an accurate picture of your business’ financial health in the short and long term. The Industrial Revolution brought about significant changes in business structures and increased the complexity of transactions. During this period, businesses recognized the need for more structured and standardized accounting systems. Are you looking for ways to expand your business or cover operating expenses? For example, most small business owners can only take 50% of meal expenses, but truckers are allowed to take 80% of either their actual costs or per diem allowances. Even some CPAs are unaware of the specifics of the industry, where unique rules and changing regulations can cause you to misreport your tax-deductible expenses.

Asset, liability and equity accounts are generally listed first in a COA. These are used to generate the balance sheet, which conveys the business’s financial health at that point in time and whether or not it owes money. Revenue and expense accounts are listed next and make up the income statement, which provides insight into a business’s profitability over time.

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