From owner-operators to managers of small-, medium- or even large-sized fleets, day-to-day life almost always involves juggling many different moving parts at once. There’s significant pressure to optimize the business and its operations to be as efficient (and profitable) as possible. This is especially true in the current trucking landscape, where many fleets are impacted by market and economic uncertainty.
Advancements in fleet software and trucking technology have helped companies streamline these daily operations. When it comes to accounting, however, many fleets and owner-operators do their bookkeeping manually or rely on basic small business software. Not only is this time-consuming but it also increases their risk of making costly accounting errors.
While some fleets might be hesitant to invest in new technologies, trucking-specific accounting software can be both affordable and a difference-maker in improving a fleet’s financial health.
What Does Trucking Accounting Software Do?
The primary selling point of trucking accounting software is that it’s designed specifically for trucking companies. Not all options are the same, obviously, as different vendors will offer different features. However, this type of software is tailored to provide critical information that helps fleets gain a full picture of the current state of their business.
This differs significantly from the most popular software accounting products available on the market. While these options are more widely available and certainly useful for general accounting purposes, they’re designed to be just that - general. Every company needs to manage their bookkeeping and financials, and these products are meant to be sold to as many companies in as many industries as possible.
On the other hand, trucking-focused accounting software provides industry-specific features to meet the demands of fleet managers, owner-operators and back-office staff.
For example, many of these products have the capability to track and report relevant data automatically. This can include metrics such as cost and profit per mile, driver pay and travel expenses, fuel taxes by state and much more. While it is possible for fleets to be profitable using regular small business accounting software, it’s more likely that users will have to spend significant time calculating this data separately.
Benefits of Trucking Accounting Software
Using the right software can you or your back-office staff run your business more efficiently and more accurately:
Save time by automating tasks.
A major benefit of using trucking accounting software is that it mitigates risk while saving a significant amount of time for trucking companies. Manual tasks such as entering invoices, expense tracking, IFTA calculations and more all become automated, as accounting and customer data is uploaded and stored in one location.
This creates simpler accounting and bookkeeping processes for fleet managers and owner-operators. You’ll be able to upload all of your documents into one system instead of filing them away and searching for them later, saving paper and reducing clutter. Additionally, tasks such as creating and managing invoices, preparing and generating statements, quarterly IFTA filing and more can be completed in minutes rather than hours.
Prevent costly (and often avoidable) errors.
Perhaps most importantly, accounting software reduces errors caused by a lack of experience or attention to detail, which can lead to costly and unforeseen consequences. For example, miscategorizing an expense may prevent you from being approved for a business loan, or missing details on a customer invoice may lead to delays in receiving payment while straining your relationship with that customer.
These are errors that anyone can make, but they’re far more likely to happen to individuals who try to DIY their accounting and bookkeeping without proper experience and training. Trucking accounting software mitigates the risk of errors while ensuring that you have the most accurate data possible.
On a larger scale, having this data in one place makes it easier for fleets to manage cash flow and get a comprehensive view of their bottom line. This can help users better analyze the financial trends and growth patterns so they can make more informed business decisions.
Improving Financial Health with a Fully Integrated TMS
Things become even more streamlined when that accounting software is part of a fully integrated transportation management system, such as ProTransport. Fleets can access a centralized and easy-to-use platform at an affordable price, including accounting, dispatch, safety and maintenance modules. It’s one of the best ways to get all of your most important information in one place.
Standalone trucking accounting software is a great way to automate your accounting and bookkeeping tasks and reduce costly errors. However, an all-in-one system is even more effective at improving your company’s financial health because of its ability to reduce inefficiencies and streamline all of your company’s day-to-day operations.