DOT Record-Keeping Requirements for Trucking Companies: Tips for Staying Compliant
Post-trip inspection reports must be kept for at least three months from the report date. Periodic inspection reports (or a copy) must be retained for 14 months from the report date. Evidence of an inspector’s qualifications must be retained for one year after the inspector ceases to perform inspections for the carrier. The following is a quick review of record-retention requirements in a few key DOT compliance areas.
Should Your Trucking Company Use a Factoring Service? Pros and Cons
SH Transport has a Driver Handbook and Safety Manual that provides information on operational and safety policies. The company aims to operate safely and in compliance with Department of Transportation regulations. Violations of safety requirements stated in the manual can result in the revocation of the driver’s safety clearance. IFTA compliance is one of the additional accounting responsibilities unique to trucking companies. Fortunately, it doesn’t have to take up too much time or energy if you plan ahead. One of the primary problems with managing your small business accounting is the sheer amount of time and energy it takes.
Kevin’s Trucking Company: Income Statement 2019
- Many business owners learn too late that mingling your personal and business funds makes it hard to identify which transactions belong in which category.
- In addition to attracting customers, a positive reputation can lead to partnerships and collaborations with other businesses in the industry.
- After all, truck drivers must keep trip records in order to be paid for their work.
- These regulations govern the maximum number of hours a driver can work and the minimum amount of rest they must take.
- The income statement shows how money flows through the company over a period of time.
- This kind of dedication to compliance enhances the company’s reputation among customers, partners, and industry regulators.
The accrual basis of accounting requires that you recognize revenues when you earn them and expenses when you incur them, regardless of when funds enter or leave your accounts. Truckers must choose between the two fundamental methods of accounting, the cash and accrual bases. They impact your tax return significantly, so consider consulting an accountant before choosing one. Another decision every small business owner has to make is what type of legal entity they want to use. Sole proprietors are the default structure, so owner-operators who start doing business without filing any paperwork will fall into that category. Many business owners learn too late that mingling your personal and business funds makes it hard to identify which transactions belong in which category.
This manual acts as a guiding document that outlines the company’s expectations, standards, and protocols in various operational areas. A high-quality policies and procedures manual covers several key components necessary for compliance. An up-to-date policies and procedures manual is essential for managing operational risk in a trucking company. It sets expectations, keeps management accountable, ensures compliance with the law, defends against employee claims, and provides guidance for complaints or concerns.
Components of a Comprehensive Trucking Company Policies and Procedures Manual
Having this documentation on hand allows prospective buyers to see the vehicle in question’s history for themselves. Fuel cards can automatically track, organize, and display the information you need to fill out your IFTA expense reports. If you’re also using truck management software, you can usually link the two and automate your IFTA average payment period responsibilities completely.
Both the Driver Qualification and Safety Performance History Files must be retained for as long as the safety-sensitive individual is employed by the company, and for reference ranges for blood tests three years thereafter. These binders will come in handy when it comes time to sell or trade in your truck. If you owed taxes in the previous year but not the current one, you must file Form 2290 to report the change and suspend your responsibilities.
Because the rules make no exceptions for one-driver companies, we advise owner-operators to maintain their DAT files separately as well. Below, we cover some of the most important DOT record-keeping requirements to help companies organize and maintain their files regularly. Regular reviews and updates of policies are necessary in a trucking company due to technology advances and changing regulations. Recent rule changes, such as the electronic logging device (ELD) rule and the Drug & Alcohol Clearinghouse rule, require companies to stay informed and adapt their policies accordingly. That’s another reason paying for tax services is essential for the transportation business.
Foley’s DOT recordkeeping experts are here to help you transfer your files to our platform and help ensure you’re audit-ready every day. Setting up (or switching) your DOT recordkeeping system in a secure, 100% online platform is the best way to ensure all your DOT files are organized and kept up to date according to FMCSA requirements. Having well organized files allow you to access the information that you need when you need it the most. It’s times like those when you’ll be very glad that you put the effort into record keeping, annoying as it might be. Common job related issues such as tax audits, incorrect pay statements, and warranty issues require written documentation in order to prove the rights and wrongs of the situation at hand.
Driver Qualifications and Training to ensure drivers meet the necessary requirements and receive proper training.3. Hours of Service Regulations to track and monitor drivers’ working hours to prevent fatigue-related incidents.4. Vehicle Maintenance and Inspection to establish regular inspection schedules and standards for safe and well-maintained vehicles.5. Controlled Substances and Alcohol Testing to ensure a drug-free workplace and comply with Department of Transportation (DOT) regulations.6. Accident Reporting and Investigation to facilitate prompt reporting, analysis, and appropriate action in the event explaining the trump tax reform plan of accidents.7. Compliance with Load Securement Guidelines to ensure that cargo is properly secured during transportation to prevent accidents or damages.8.
The cash basis involves recognizing revenues when you receive payments and deducting expenses when you pay them. Because working in the trucking industry involves taking on significant risk, you’re often better off taking the time to form a limited liability company (LLC) or a corporation. As a result, you probably shouldn’t try to manage your trucking business’s accounting function without help. It may be worth handling some lower-level aspects, but you’re better off outsourcing the more complex and time-consuming parts. While they’re theoretically distinct, the line between them is somewhat blurred. Here’s what you need to know about trucking accounting, including how to set up an effective system and some common mistakes to avoid.