Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: http://read.dmtmag.com/i/127433
Business Preparing for April 15, 2014 Some of you might have gotten a little sticker shock from your forced donation to the IRS last month. If that's prompted a midyear resolution to cut costs and get better organized, here are some tips: DRAFT A BUDGET AND USE IT. Document three to four months of your revenues and expenses, and plan a realistic monthly budget through Dec. 31. Your accountant can help you get started and provide advice that will cut your 2013 tax bill. Don't forget to budget a cushion for savings, estimated taxes, emergencies and lean times. RECORD EXPENSES THAT PRODUCE NO RECEIPT. Keep a notebook in your cab to document taxdeductible expenses such as business use of your car or washing your truck at a coin-operated facility. Note the date, location and amount. USE A BUSINESS CREDIT CARD. Separating personal and business credit spending will help your accountant reckon your business expenses properly. It also will help if your tax return is audited. AVOID OVERDRAFTS. Most banks offer an overdraft protection service, which for a small fee automatically draws from your savings or credit card account to cover a bad check. Also, record every check and debit card purchase as soon as possible. Develop a system for logging automatic monthly drafts, such as for utilities, whether it's a note on a calendar or a future entry in your checkbook. GET ONLINE BANKING ACCESS. You don't have to pack a computer and find a Wi-Fi signal to keep up with your accounts while on the road. Many banks now offer mobile banking via smartphone, enabling you to check your balance and cleared checks anywhere you have a cell signal. DON'T TAKE CASH ADVANCES. It's best to have a business operating account to manage cash flow instead of being dependent on your carrier. For some operators, having too much cash on hand is a temptation to waste it on unnecessary accessories and other items outside of your budget. Gauges Spot market rates jump Spot market rates for van, reefer and flatbed freight saw a good increase in March as housing starts continued to surge and other seasonal factors boosted demand. Rates had been declining since November. DRY VAN FLATBED REEFER $2.50 $2.25 Internet Truckstop The mileage costs for businessrelated trips to the bank are taxdeductible. $2.00 $1.75 $1.50 March 2011 March 2012 March 2013 $3.89 That's the lowest national weekly average diesel price since Aug. 6, according to the U.S. Department of Energy's Energy Information Administration. After 35 weeks of diesel remaining above $3.95 – most of that spent above $4 – the national average price dropped to $3.89 for the week ended April 22. That culminated eight consecutive weeks of declines after a February high of $4.159 – the highest price since August 2008. Curtailing phone use while driving Four out of five fleet executives said they made drivers sign a written policy about the use of electronic devices — presumably banning or severely restricting use — while driving. The 547 respondents in the Aegis Mobility survey also said they use other methods of enforcement. How fleets enforce phone policies Written/signed policy Training Observation and reporting Post-crash discipline Random safety audit 81% 76% 72% 55% 40% Somewhat 61% According to the same respondents' confidence Very levels in those efforts, fleets still are determining Not 32% which methods best discourage phone use: 7% How confident are you in policy enforcement? 12 | Overdrive | May 2013 Business_Lead_0513.indd 12 4/30/13 9:45 PM