Considering the Hidden Costs Involved with Your Small Trucking Business

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Have you been thinking about going into the trucking business for yourself? If so, being an independent entity can bring about a lot of freedom as opposed to working for a large trucking franchise. While being your own boss can seem like a dream come true, keep in mind there may be some hidden costs and things involved that you should consider first. Here are just a few hidden costs and expenditures you can expect to come across as you embark on your new trucking adventure.

Bookkeeping and Accounting

Operating a single truck and trailer or a few can quickly run up your expenditure report. Making sure that you have all of your ducks in a row is vital. With everything from tracking expenses to obtaining and maintaining the necessary trucking authority, every move you make in your trucking transportation business needs to be visible on paper so you can easily share your profits with the IRS and other financial entities. This starts with making sure that you have a top-notch bookkeeper and accountant on staff, or certified services to match. This qualified individual or vetted software will be able to take care of all accounts receivable and payable matters related to your business. They will also be responsible for money distribution and bill payments to ensure that your business operates properly and legally. Making sure that all of your accounts tie in with your bank is very important for the proper flow of money.

Repairs and Maintenance

An expense to consider when starting a trucking business is specific repairs and maintenance related to your truck and other related equipment. A huge expense is tires and their repair. Tires can run a few thousand dollars a year, and the heavier the load and the more miles you put on a truck—the higher this expense will cost you. If you can retread your tires, you should consider it. This will save you money and help your dollar stretch further. Making sure that your truck is in tip-top shape starts with routine oil changes and transmission flushes. From there, hiring a qualified mechanic to inspect the entire truck is important. Preventative maintenance can drive your expenses up, but it’s a must in order to make sure that your truck is safe for the driver and the load.

A Good Home Base

It can be a little challenging running your own freight company out of your small home. That is why most people who invest in their own trucking company find a good location that offers room for storing their trucking fleet and safely housing trailers when not in use. You’ll also need an area to work on your truck that is equipped with the proper mechanical tools you’ll need to quickly get the repair done and get back out on the road as soon as possible. Your administration offices should also be here, it saves time and money when you’re trying to keep the lines of communication open between the driver and client. It’s also important to have your office manager keep you supplied with a gas card or other automated account when using a lot of toll roads.

Making It Legal

Along with regular expenditures, you’ll have to consider the right insurance and licensures that will make your business legal and safe. Insurance is important to not only protect your truck, but also keep you safe and the load that you’re carrying. Because accidents happen, making sure that you have the proper insurance to cover the cost of repairing or replacing your rig which you’ve spent hundreds of thousands of dollars on can make or break your business. Make sure you have the proper forms and licenses inside your truck at all times. Contacting the Federal Motor Carrier Safety Administration is a good place to start. Make sure that your weight and size is within federal regulation. Incorporating your business is another way to add a sense of security and professionalism to your fleet. Set up an appointment with your attorney to go over incorporating your business and to make sure that you have your company off to a good start by protecting your assets.

There are many things to consider when it comes to making sure your trucking business is safe and successful. Being prepared for hidden expenses is something you should be ready for.