How do I prepare my trucking books for tax season?
Reconcile every bank account and credit card through December 31. Your accountant can’t prepare an accurate return if transactions are missing, duplicated, or sitting in uncategorized limbo. Go through each account statement and make sure everything in your books matches what the bank shows.
IFTA requires special attention. Verify that all four quarterly filings are complete and that your fuel purchases reconcile with your records. Organize fuel receipts by state because your accountant may need to verify your fuel tax credits. If your quarterly filings had errors, get them corrected before tax season so the numbers on your return match what you reported to IFTA.
Mileage logs need to be complete for every truck. Total miles, loaded miles, and miles by state all matter for different purposes. If you use an ELD system, export the annual reports. If you’re still tracking manually, now is the time to fill in any gaps while you can still remember routes from the past few months.
Per diem tracking applies if you’re an owner-operator or if you pay drivers per diem. The IRS special rate for transportation workers changes annually, so confirm you’re using the correct amount for the tax year. Keep records showing the days away from home and the per diem amounts claimed.
Form 2290 for Heavy Highway Vehicle Use Tax should already be filed and paid for each truck over 55,000 pounds. Pull copies of the stamped Schedule 1 for your records. If you added trucks mid-year or sold any, make sure those transactions are documented with proper filing dates.
Equipment depreciation schedules need updating. If you bought trucks, trailers, or other equipment during the year, those assets need to be added to your depreciation schedule. Trucking companies often have significant depreciation deductions, and Section 179 elections or bonus depreciation decisions should be discussed with your accountant before the return is filed.
Gather documentation for all your operating expenses. Insurance premiums, licensing and permit fees, maintenance and repair invoices, tire purchases, and lumper fees should all be categorized properly in your books. If you paid owner-operators or independent contractors more than $600, you’ll need to issue 1099s by the January deadline.
The common problem at tax time isn’t missing documents. It’s that the books weren’t maintained during the year, so everything becomes a scramble in February. If your bookkeeping services in Santa Fe NM include monthly reconciliation and proper categorization, tax prep becomes a handoff rather than a reconstruction project.
Review your profit and loss statement before sending anything to your accountant. Look for expenses that seem too high or too low compared to what you remember spending. Catch coding errors now rather than after the return is filed and you realize half your fuel got categorized as repairs.
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