Commercial trucking companies paid about $45.7 billion in taxes in 2018. It’s data like this that many people don’t think about when starting their own trucking business. Small business banking is what makes or breaks your trucking business.
You could haul loads non-stop and find yourself operating at a loss at the end of the year. Or you find your business in a bind when your fleet needs unexpected maintenance.
This guide will help you set up your trucking business for success by understanding the financial side.
Set Up a Bank Account
Never mix your business finances with your personal accounting. Set up a business checking and savings account.
Arrange for all business payments to go through these accounts. Pay yourself out of these accounts as an employee of your business.
If you plan to be the one driving your own truck, then look for a bank that offers small business online banking. You can manage your business accounting from anywhere while on the road.
Create a Business Budget
It’s crucial that you create a budget for your business. You may need to have several budgets for a new business. You’ll find that your expenses change and evolve.
Plan for daily operation costs, long-term growth, and fleet maintenance costs. This ensures you plan for both short and long-term expenses.
Understand Your Tax Liability
Taxes will play a major role in your trucking business. If you neglect this portion of your accounting, you could face major penalties later on.
- Income tax
- Employment tax
- Road and fuel tax
- Vehicle and state tax
It can be helpful to set up a separate small business bank account for taxes. Then you can set money aside as you operate your business. When the tax bill comes due, you can pull directly from this account and have the payment ready.
Apply For Financing
Unless you’ve saved up, you’ll probably need financing to start your trucking business. This is the money you will use to purchase your single or fleet of trucks, obtain licensing, purchase insurance, secure a bond, and pay for anything else that arises during the starting of your business.
Speak With the Experts
If this is your first time starting a business, or it’s your first time venturing into the trucking industry, then you need to speak with a financial expert. Look for an accounting service that has experience with trucking companies.
Checking out this page can help you understand all of the services that a financial expert and accounting service can provide your business.
Upgrade Your Small Business Banking
Starting a trucking business can be an exciting and nerve-wracking venture. While you may want to focus on buying a truck and securing loads, there’s another part you need to think about. Small business banking helps you manage the financial side of your business.
Start by opening a dedicated business account, learn about your tax liability, and apply for financing. If you find yourself getting overwhelmed, it’s smart to seek out the guidance of a professional.
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