Why The Right Accounting Software Matters
Many businesses reach a point where the manual processes and fragmented accounting techniques they originally relied on to manage taxes, finances, payables, receivables, and inventories start to hinder rather than help them. Companies that want to succeed need to do more than keep a simple general ledger or insert data into various spreadsheets and papers.
Accounting software helps both established and growing companies cost-effectively manage, streamline and automate basic and more complicated financial and operational processes. In this article, we’ll look at some of the biggest benefits of creating your trucking invoices through accounting software and how they help companies better compete in today’s dynamic and increasingly complex markets.
Biggest Costs Of Running A Trucking Business
In New Zealand and Australia, trucking is the most widespread method of transporting goods. Despite the competitive nature of the market, there are opportunities for ambitious entrepreneurs with enough investment capital and a sound plan. If you want to succeed in the world of trucking, the best place to start is by understanding the costs. With this information, you can learn how to lower trucking expenses to increase profits.
Fuel charges
As the price of diesel rises, many firms with little financial resources may struggle to stay afloat. Fuel is a necessary, ongoing expense in any trucking business – but that’s not to say you can’t find ways to reduce the costs.
By using trucking accounting software, you can reduce trucking costs through better fuel management and optimised route planning.
Vehicle and maintenance cost
Everything is bigger and more expensive to maintain and repair on a truck than it is on a car. Even a small fleet of vehicles is a significant investment, and maintaining them is a continuous cost.
Oil changes and tune-ups are required on trucks on a regular basis, not to mention testing of brakes, transmissions, and electrical systems. By tracking trucking revenue per kilometre, you can see what each vehicle in your fleet is earning and compare it against the ongoing costs.
Labour costs
When running a trucking firm, labour costs will account for a major portion of your annual budget. You’ll need to hire other people to drive your trucks, run your office, and load and unload your items unless you’re a one-truck operation.
Some businesses hire their own drivers, while others use independent contractors and pay them separately. If employing your own team, benefits and pensions, as well as salaries, are your responsibility.
Marketing and advertising expenses
Clients must be aware of the existence of a trucking firm in order for it to survive. You must market your organisation widely and keep a strong public presence in order for this to happen. A marketing budget helps make this happen.
As most trucking companies serve other large corporations rather than the general public, much of a trucking company’s marketing is industry-specific. This could include paying for adverts in trade magazines and attending trade shows.
Intangible costs such as business fees and insurance
Licensing, business fees, and insurance can eat up a large portion of a trucking company’s cash. Commercial vehicles are treated very differently from private vehicles and have their own licensing and permit needs to operate. Because of the potential for danger and injury to others when driving an 18-wheeler, any trucking business will also need to factor in liability insurance.
Use An Accounting Software To Control Trucking Expenses
Accounting software reduces the need for manual involvement, saving time, lowering the percentage of errors to a negligible level, and increasing the program’s efficiency. As a result, a business’s accounting requires fewer professionals and hours to complete.
Trucking accounting software, such as that offered by Xero and MYOB, is built to be able to cater to businesses of any scale. The software also assists in keeping track of all documentation and spending, allowing for better financial management. It is simple to use, and those using the system can keep track of daily costs from anywhere in the world, at any time of day. Users can check daily revenues as well as perform accounting duties using the intuitive user interface.
By using transportation accounting tools that are integrated with your TMS, you can control your trucking expenses, using best invoicing practices to get paid on time. Each invoice can be created directly from your TMS software, reducing errors and ensuring that invoices are sent promptly.
Key Benefits Of Using An Accounting Software For Your Business
Features of accounting for trucking businesses include everything from basic invoicing and billing to project management and tax calculations. Accounting software is an essential tool for your business’s financial data. It can also help in the management of clients, the reconciliation of bank accounts, and the generation of informative financial reports, all of which aid in the smooth and continuing growth of your company.
Here are a few of the key benefits that trucking company accounting software can help your business.
Helps in invoicing and billing
Managing your invoices on paper is inconvenient, time-consuming, and can be prone to mistakes. Accounting software efficiently addresses these concerns and provides features that make invoicing simple.
For regular customer orders, you can schedule invoices to be sent out automatically every time the order is placed. You can also add payment terms and conditions to your invoices to let your customers know what to expect when it comes to payments.
Aids in expense tracking
Keeping track of your costs is critical for managing your cash flow. Accounting software allows you to track and categorise your spending so you can see where your money is going.
Accounting software can also be used to upload expense receipts, scan them, and automatically record information from the scanned receipts. This eliminates the requirement for paper receipt storage and the risk of misplacing them.
Integration of your accounting system to payment gateways
Payment gateways keep track of the payments you receive and automatically update them in your accounting system under the related invoice. They also provide clients with a variety of payment options, including credit and debit cards, as well as online bank transfers.
You may connect your accounting system to a variety of online payment gateways so that clients can pay you quickly and securely.
Bank reconciliation
Accounting software simplifies bank reconciliation, which is a basic accounting element of a business. By directly connecting your bank account to accounting software, you can immediately import statements from bank feeds into your accounts.
Custom criteria and bank rules can be set up in your accounting software to automatically categorise and match incoming bank transactions. After you’ve matched your transactions, all you have to do is verify and confirm them to reconcile your accounts.
Better cash flow management
Managing your cash flow is a challenge for any business, but with custom profit and loss reports and other helpful tools, trucking accounting software makes it easy.
Learn more on how to resolve cash flow management errors or read a selection of top tips to improve cash flow in your business.
Helps in inventory management
With accounting software, you can create a sales order, convert it into an invoice after approval, and attach the appropriate taxes to it. From the same system, you can track stock and establish reorder levels for your goods to receive automated emails and place timely orders. You’re also able to create inventory-specific reports to get a better understanding of your inventory and manage it more effectively.
Effective data analysis and reporting
As a business owner, you must monitor your company’s progress on a regular basis and make the appropriate decisions to ensure its long-term success. Accounting reports assist you in deciphering financial trends and analysing growth patterns in your company.
In Summary…
Transportation cost accounting software combined with MyTrucking TMS provides you with everything you need to manage the daily running of your business. From payroll to analysis, you’ll have everything you need in one place. Get started with a 14-Day Free Trial of MyTrucking today.
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