The Most Common Bookkeeping Mistakes for Owner Operators

I've spoken to many owner operators and quite frankly the biggest mistake I have seen is pretending bookkeeping doesn't exist. Better yet, "doing the books" once a year for taxes only!

Next Most Common Bookkeeping Mistake

Tied closely for second is keeping incomplete or outdated books, but at least you tried for a little while. You might ask, why does it matter? I get my settlements weekly from my carrier I have contracted with and pay the IRS based on last year's taxes. Here's some tough love...you are thinking like an EMPLOYEE and not a BUSINESS OWNER! You need to have a bookkeeping system in place.

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Take for example the very first full week settlement for my fiancée. I tracked settlements by comparing his records to the carrier's settlement. Lo and behold, they didn't pay him for an entire load!! How do I know? We created an invoice for the week in his bookkeeping software. He entered each move daily with the agreed upon price as an item. Granted it was only a $80 short 4-mile run, but can you imagine if only every other week they "miss" paying you for the work you performed under your contract. The cost is over $2000 in a year!!

Third Most Common Bookkeeping Mistake

What about missing or illegible receipts when it comes to tax time? Can you write off that repair job for $1600 if you know you did it, but can't find the invoice from the shop? Most tax professionals need to see that receipt to be able to put it on there.

Bank statements and credit card statements do NOT count as a receipt.

Fourth Most Common Bookkeeping Mistake

Finally, not having complete up-to-date records for your business is hindering you from making informed business financial decisions. When you have a major breakdown, should you repair or replace? What's your business' financial health looking like for financing?

Working with a bookkeeper such as myself, you just need to make a call or send an email. I would prepare them by the following day (assuming I have everything from you to be up to date).