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December 20, 2020
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How to categorize certain items for a trucking business in Chart of Accounts?

  • December 20, 2020
  • 1 reply
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Hello, we are a multi-member LLC (trucking company) and I want to make sure our initial setup is correct. We will haul a load for a customer from Point A to Point B and then receive payment. So my questions are...

 

  1. Is the "Service/Fee" Income account what we should use when getting paid for hauling loads?
  2. How do we categorize a truck we buy outright (no loan) in accounts?
  3. How do we categorize GPS/logging devices purchased for trucks and their annual licensing costs.
Best answer by Rustler

@EEM wrote:

Hello, we are a multi-member LLC (trucking company) and I want to make sure our initial setup is correct. We will haul a load for a customer from Point A to Point B and then receive payment. So my questions are...

 

  1. Is the "Service/Fee" Income account what we should use when getting paid for hauling loads Yes
  2. How do we categorize a truck we buy outright (no loan) in accounts? it is a fixed asset subject to accumulated annual depreciation
  3. How do we categorize GPS/logging devices purchased for trucks and their annual licensing costs.  If each costs less than 2,500 you can expense them, or you can list them as fixed assets and depreciate them.  The annual licensing cost is an expense.

 

1 reply

Rustler
RustlerAnswer
December 21, 2020

@EEM wrote:

Hello, we are a multi-member LLC (trucking company) and I want to make sure our initial setup is correct. We will haul a load for a customer from Point A to Point B and then receive payment. So my questions are...

 

  1. Is the "Service/Fee" Income account what we should use when getting paid for hauling loads Yes
  2. How do we categorize a truck we buy outright (no loan) in accounts? it is a fixed asset subject to accumulated annual depreciation
  3. How do we categorize GPS/logging devices purchased for trucks and their annual licensing costs.  If each costs less than 2,500 you can expense them, or you can list them as fixed assets and depreciate them.  The annual licensing cost is an expense.

 

EEMAuthor
December 21, 2020

This is helpful. Thanks!