What’s Most Valuable to You?
There are going to be several expenses that mean a lot to your business. We live in a society where you get what you pay for and you need to ensure you’re getting the quality you need where you need it most.
For a trucking company, expenses like payroll, truck maintenance, and technology will be vital to your business. Since every company is unique, you’ll One of the biggest issues trucking companies face today — any company, really — is getting the business to a state of financial security. While many owners make it a keen point to track, record, and manage their incoming revenue, there’s a strong majority that does not put the same due diligence into their expense report.
It doesn’t matter if you have one truck to maintain or several dozen, your expenses will pile up quickly. Your goal has to be figuring out what your expenses are, determining which of those expenses are worth the most, and finding ways to cut or limit costs.
As a freight factoring company that works with a lot of trucking company owners, we have the advice you need to get there!
What Are Your Expenses?
First off, you’ll need to create some sort of running checklist to not only determine your expenses but to manage them as well. Many owners like to use a calendar so they can easily see what lies ahead, but your method will purely be based on preference.
You can split these costs into three different categories — fixed costs, variable costs, and costs per mile. Fixed costs will include truck payments, office rent, insurance payments, and payroll. Variable costs will include fuel, maintenance, tolls, lodging, and food. Cost per mile will take everything above into account, giving you an estimate of how much you’ll be spending per mile traveled.
When you have these expenses in front of you, you won’t be missing any payments and will always have enough cash flow to keep your business running smoothly. A freight factoring company can further help you manage cash flow to ensure you have the money to cover your expenses.
have several other expenses that mean a lot to you.
When you look at these expenses, you shouldn’t be cutting any corners with them. If you have to pay a little more to get the quality service you need, these will be the expenses you should invest in.
Are You Cutting Costs When Possible?
On the other hand, some expenses will open up clear opportunities to save money and cut costs. You’d be surprised by how many discounts are available through fuel cards that provide a credit line and savings of up to 30 cents per gallon.
Many services and repair shops will have discounts available to those that build a solid relationship with them. They know how much trucking you do every year and they understand it only means more business for them.
You can also hire a freight factoring company to help you manage overdue payments. Your expenses won’t stop, so you need to make sure you’re receiving your payments on-time. A freight factoring company will give you an advance on any overdue payments until it’s paid in full.
Lastly, finding ways to become more fuel-efficient, and strategic with your every move can save you a lot of money when out on the road. After all, every dollar saved counts and you’ll appreciate it more than you can imagine!