Starting a trucking business is not as hard as you might think. There are some steps you’ll have to do first, before you can conquer the open highways of Canada. This article goes over some simple ideas that could accelerate your trucking income.
Disclaimer: I am an accountant, and this article is not financial advice or tax advice. This is simply for informational and entertainment purposes for anyone looking for easy ways to increase their bottom line as a trucker.
Let’s get into some ways to accelerate your trucking income.
1. Increase Profit Margins by Paying Down Debt for Trucking Companies
The profit margin of a trucking company is going to greatly depend on many factors. What debt ratio the company has will determine how much revenue is going towards net income and how much is going towards interest and paying off the leases and loans of the company. Paying down debt is a simple way to increase profit margins because, once the debt is paid off, there won’t be interest and principle to pay.
once the debt is paid off, there won’t be interest and principle to pay.
2. Find Higher Paying Contracts.
Always being on the lookout for high-value loads can pay. Load values can change depending on market conditions, so what pays well one year can be different the next. Keeping an eye out and an ear to the ground for high-paying loads and contracts can increase your bottom line in trucking. We’ve seen clients double their revenue or more just by switching dispatchers.
Always being on the lookout for high-value loads can pay
3. Schedule Backhauls so You’re Never Traveling Empty.
Returning empty when you could be getting paid means less revenue for your truck. Spending a little extra time to work out a backhaul, even if it’s less than a truckload, can increase your profit margins and accelerate your trucking income with little to no added costs. Look for loads to backhaul so you get paid more.
Look for loads to backhaul so you get paid more.
Shaving Trucking Expenses.
Some trucking expenses will be nearly impossible to shave down. You know which expenses these are; fuel, tolls, truck maintenance, insurance, and licenses. But if you get creative, you can shave work-related expenses to increase your net income.
4. Shave Food Expenses.
Some ideas that some of our clients have implemented are things like bringing a cooler of store-bought food with instead of fast-food. Fast food prices are going through the roof right now, and it isn’t all that great for you anyways. Preparing your own food can save you money and it’s going to be healthier for you.
Preparing your own food can save you money
5. Reduce Cell Phone Bills
Cell phone providers are getting competitive, even in Canada, which is a breath of fresh air after the over-priced cell phone service provider fees we’ve seen in the past. You may want to consider having two different sim cards, one for the U.S. and one for Canada, or switching to a provider that is cheaper. I use Public Mobile, which is a Telus rebrand that is more economical. The cell phone reception is the same as Telus. Feel free to look around and see what’s available. There are always cell phone service promotions, so it just depends on what the deal of the day is.
You may want to consider having two different sim cards, one for the U.S. and one for Canada
6. Shave Accounting Expenses
Another area of savings (this one’s my favorite) would be to find an affordable professional accountant. We offer the best value in accounting services, which will save your trucking business money! Give us a call today to see what we can do for you.
find an affordable professional accountant
Conclusion
As with any business, your bottom line is what drives you forward, and finding and implementing simple ways to accelerate your trucking income will serve you in the long-run.
If you need any accounting related services, we provide fullservice bookkeeping and tax preparation. We help you save time and money by spotting legal business deductions that might otherwise go overlooked. Please contact us to see what we can do for your trucking business.
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