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Learning to manage your money is crucial to your success. Keeping track of your costs
and learning where you can reduce spending is essential. You must sit down and write out
a budget and a system for keeping track of your income and expenses. Determining your
minimum cost to operate is the first step. Know your expenses, don't be caught off guard
and plan for emergencies. Don't forget to save for preventive maintenance. Be sure
to allow for both planned and unplanned maintenance. It is recommended that you try to
put 10% of your gross income aside for emergencies.

A record keeping system doesn't have to be complicated. It just has to accurately reflect what you spend and what you take in. Bookkeeping is nothing more than grouping and summarizing all your income and expenses. To help you record your income and expenses you can make up your own Worksheet. All you'll need is an accountant's pad available in any stationary or office supply store. Simply list each month across the top of your worksheet and all your costs down the left side. First list "fixed costs" such as truck payment, truck insurance, medical insurance, licenses, permits, highway use tax, preventative maintenance, etc. Fixed costs are your costs that remain the same month to month or year to year. Next list your "variable costs" such as fuel, fuel taxes, tools, supplies, telephone, repairs, parts, etc. Project out for a year what you think your costs will be then keep a second worksheet with your actual costs each month.

Compare the difference to see if you can rely on your projections. Being able to accurately project your future income and expenses is a tremendous help for tax planning and business management purposes. Next you should record your monthly income across the top of the worksheet.

Knowing your cost per mile is another important business tool. Be sure to keep track of
your miles each month and calculate your cost per mile. To calculate your cost per mile
divide your costs by your number of miles. Determining your cost per mile is a good way
of keeping track of how well you're doing. Proper realistic planning can and does make the difference between success and failure.

Once you have your system set up we recommend sending your records to your bookkeeper or tax preparer on a regular basis, at least quarterly. By sending your records you will be informed of your current tax situation and get help with planning. It will also help guide you through your financial questions. Not to mention having your quarterly estimated taxes adjusted so that you can avoid penalties. Whether you do your own bookkeeping or have a tax preparer do it, you should always use someone familiar with the trucking industry.

The trucking industry has become more and more complex. An expert who knows trucking can provide the best advice concerning methods of depreciating equipment, options concerning equipment purchase and/or lease as well as keeping up to date on changes in the tax laws that affect the trucking industry.

This article has been presented by PBS Tax & Bookkeeping Service, a company that has been providing income tax and bookkeeping services to the trucking industry for over a quarter century. If you would like further information, please contact us at 800-697-5153. See our Web Site at www.pbstax.com.

Please remember everyone's financial situation is different. This article does not give and is not intended to give specific accounting and/or tax advice. Please consult with your own tax or accounting professional."

Everyone's financial situation is different. This article does not give and is not intended to give specific accounting and/or tax advice. Please consult with your own tax or accounting professional.

This article has been presented by PBS Tax & Bookkeeping Service, a company that has been providing income tax and bookkeeping services to the trucking industry for over a quarter century. Contributions to this article were made by Shasta May, Director Business Development for PBS. If you would like further information, please contact us at 800-697-5153. See our website at www.pbstax.com.