It is important to keep track of your business’s income and expenditures. However, there is much more to managing a small trucking business. Minor accounting mistakes can account for much more in a small business than in a corporate one. Learn how to manage the business side of your fleet and avoid debt or even setbacks with Porter Billing Services.
#1 Use a Business Bank Account
If you are operating your business using your personal account, you may quickly find transactions are hard to track. Don’t make this mistake. Keep your personal expenses and business transactions separate! Open a business account, and use that account only to manage all financial transactions of your fleet.
#2 Commit to Bookkeeping
Especially with a small business, if you are doing all of the accounting work, you must dedicate time each week to recording, evaluating, and analyzing your books. Even a one-week lapse in bookkeeping can cause your fleet to get incredibly behind. You may also find that you do not have the access to immediate cash that you need to fund daily operations. The way to ensure that you have a constant flow of cash is to make sure that you are collecting consistently and on time. If collecting from your clients becomes a problem, you should consider looking into freight factoring!
#3 Manage Your Payroll
Even if you start out with one employee, it is important that you manage all cash flows and account for payroll expenses. Payroll can be a business’s biggest expense, and if you are not careful, you may find that you are unable to pay workers on time due to insufficient working capital. Stay on the safe side, and make sure that you are documenting payroll every pay period. Backlogged time or overtime should be included as well!
Learn More with Porter Billing Services
At Porter Billing Services, we specialize in freight factoring for small fleets. We know what it is like to run a small business, and we are here to help everything go smoothly. We would love the opportunity to help your business grow. Learn more about the services we offer, from nonrecourse to recourse factoring. Contact us today!