Instead of just controlling costs, owner-operators should be focusing on “waste control.” The things you need to run a trucking business, such as fuel and equipment, often get used inefficiently. The resulting waste hits where it hurts the most—in the pocketbook. Remember, every dollar saved goes directly into your pocket.... Read More

Your P & L statement is a useful tool, giving you a snapshot of how you're doing for a specific period of time. However, you can increase the value of the statement as an analytical tool by comparing it to your budget, your past performance and other drivers at your carrier, or in the industry.... Read More

The April 15^th deadline for filing taxes has just passed. Many of you got your taxes submitted on time and some of you probably filed extensions giving you until October 15^th to file your return. A lot of you had someone else prepare your tax returns for you. Because we all hate paying taxes, there is often the temptation to use a preparer that promises higher refunds, sometimes suggesting deductions that may not be legitimate. Making the choice to use a dishonest tax preparer can put you and your business at risk.... Read More

How much money am I making? How are certain actions affecting my business? How much do I owe in taxes? What are my problem areas? Is my budget accurate?

The Profit and Loss Statement (P & L), also called the Income Statement or Earnings Statement, is one of the most valuable financial reports for viewing the status of your business. It measures your revenue and expenses during a specified period of time and shows your financial progress for that time period. The massive amount of numbers listed on the P & L statement can often be confusing and intimidating but understanding what they all mean can help you answer the important questions listed above.... Read More

If someone asked you how much it cost to run your truck last month would you be able to tell them off the top of your head, or would you have to spend hours digging through receipts and adding them up? Even if you knew your total costs would you know how it compared to the previous month's total costs? How about year to year? Or what caused the increase or decline for each cost? Keeping track of your cost per mile allows you to understand this information.... Read More

In the last post, we talked about revenue, but revenue is only half of the profit equation. Costs comprise the other half and being a successful business owner means managing costs as well as generating revenue.

Managing costs is important regardless of the state of your business. If you are doing well, cutting costs will increase your ability to save more or invest more in your business growth. If your business is in financial danger, cutting costs is one of the key components in weathering problems and getting back on track. ... Read More

Many drivers become owner-operators so they can make more decisions for themselves and have more control over their lives. If you don’t develop a good plan for managing cash it’s only a matter of time before a serious crisis takes away your ability to make decisions for yourself. Poor cash management may also mean that cash reserves aren’t available when you need the money most, and that could put you out of business.... Read More

You became an owner-operator to make more money so naturally revenue is an important focus of your business. Most owner-operators are paid on a per-mile basis and while pay-per-mile is important there is a lot more to consider when evaluating and understanding your revenue.... Read More

Last time we talked about ways to control those business expenses that can get an owner-operator into trouble. But even a business that is doing well will have difficulty surviving if you can't meet your personal obligations.

That is why it is so important to include personal expenses in your budget. The budget can help identify the costs at home that are causing you the biggest problems with cash flow. When looking at your home bills, keep in mind some of the following:... Read More

As you've learned in previous blogs, a budget shows your projected revenue, expenses and net income allowing you to see where your money will be going and what your potential tax liability will be. We also talked about your break-even point - the point at which all trucking and personal fixed expenses are effectively met.... Read More