Haulin Assets

#39. How To Prepare For Your Taxes

No one likes to pay taxes and submitting your tax returns is not the funnest thing in the world. In this episode, I’ll share some tips to make the process as painless as possible.

What to Expect From Episode 39

Don’t wait until the last minute to get started. Unless you file your taxes as a sole proprietor, your return is due March 15th of every year. You should typically have all your info to your accountant by the end of February to give them time to get it all done and filed on time. If you can’t do that, you can file an extension, but that is an extension to file, not an extension to pay. 

Use an accountant who does business taxes, ideally, someone who knows the trucking industry.

 

Here are some of the main things you will need to provide your accountant.

• Your EIN Number, ideally the document from the IRS that has your EIN on it
• A copy of your P&L for the entire year 
• A copy of your Balance Sheet as of the end of the year, include a comparison for the end of the previous year too, if you have been in business for more than one year
• Copies of the bill of sale for any major purchases you made during the year, like your truck and trailer
• Copies of any 1099’s you have received
• Interest amounts paid on your loans
• Number of nights you were on the road away from home
• If you are using a new accountant, a copy of your tax return from the previous year

 

Here are some good questions to ask your accountant.

• What method of depreciation do they recommend using?
• Should part of your driver pay be paid using per diem?
• When will they have the taxes prepared by? Make sure you hold them to it.

 

Listen to the episode and where we go over all of this in more detail.

#38. January Financials, Not What I Expected

Another month has passed by and financials are out.

What to Expect From Episode 38

January was a much better month than I was expecting. In fact, it was the best month I have ever had. Listen to the episode to learn what contributed to the success. Here is a quick overview, and Craig and I talk about all the details during the episode. Scroll to the bottom and you’ll see copies of the Profit and Loss Statement and the Balance Sheet.

• Total miles ran - 9,629
• Deadhead miles - 1,188 (Out of Control)
• Total revenue - $21,470.03
• All-in rate-per-mile - $2.23 (Best Ever)
• Full days on the road - 11
• Partial days on the road - 11

In the end Haulin Assets realized a profit of $4,516.85, which is the best month I've had yet.

To see full show notes and hear past episodes, check out the Haulin Assets website.

#37. Do You Have an Owner-Operator Mindset?

Since I started this podcast, I've talked a lot about having the mindset of an owner operator. I going to dive deeper into that topic during this episode.

What To Expect From Episode 37

I created a list of 10 questions you can ask yourself to help you know if you have the mindset of a successful owner operator. Craig and I will talk about each one of them in depth. They are listed them from what I feel like is the least to the most important characteristic. You might not feel like you've developed all these characteristics, but as long as you are strong in most of them and willing and able to strengthen the others, you have a great chance of becoming a successful trucking company owner.

10. Do you constantly seek to improve?

9. Do you accept change?

8. Do you have a failure is not an option attitude?

7. Do you recover quickly from your failures?

6. Do you love a challenge?

5. Do you take charge?

4. Are you resourceful?

3. Do you understand your numbers?

2. Do you manage your cash well?

1. Do you take action?

#36. To Take A Load, Or Not, That Is The Question

One of the most common questions Owner Operators ask themselves is whether they should take a lower paying load now, or sit and wait for a better paying load. We try to answer that question during this episode.

What To Expect From Episode 36

Math class is in session. Here is a story problem we are going to use to answer the question whether we should take a load or sit.

You know you can get a load today at $1.80 per-mile that will keep you running 650 miles a day for three days. What rate per mile do you need to earn the same gross income if you sit today and wait for a better paying load tomorrow that runs two days at 650 miles per day? Your variable costs are $1.33 per mile.

Download this worksheet to help with the problem.

#35. December Financials

If you have not listened to episode 33, Bad News, Good News, listen to that first. There is a backstory to this episode, and understanding it will give you better context to this episode as we go over the December financials.

What to Expect From Episode 35

December was a tough month. I had to do an engine rebuild, so I was out of commission and did not pick up my first load until the 17th. I ran until the 23rd and then was back at it on the 26th. I was hoping to take a little more time off around the holidays, but fate wanted me taking my time off earlier in the month.

Obviously, December was not going to be a great month, but it could have been a lot worse. Because the repairs were all covered under warranty I didn't have any repair costs. The bad news is revenue and my pay as a driver was way down. The good news is that I actually turned a profit for the month, just a small one.

Some of the highlights are below. Listen to the episode where Craig and I talk about these numbers and the profit and loss statement and balance sheet in more detail. You can look at the financials yourself by clicking on the links at the bottom of the page.

• Total miles ran - 4,657
• Deadhead miles - 226
• Total revenue - $9,600
• All-in rate-per-mile - $2.06
• Full days on the road - 8
• Partial days on the road - 4

In the end Haulin Assets realized a profit of $1,839.68.

#34. How To Start The New Year Off Right

Do you want to know what one thing will have one of the biggest impact on your business? It's giving your business a sold direction with specific goals to meet. Annual planning is one of the things Chris does that has a significant benefit to his businesses. It doesn't have to be complicated or long and drawn out. In fact, simple is better.

#33. Bad News, Good News

The Bad News

I like to rip the bandaid off quick and get the bad news over with first. The head on my truck cracked and had to be replaced along with the cylinder sleeves. I was off the road for three weeks.

The Good News

It was all covered under the extended warranty I purchased. Boy am I glad I bought that warranty.

What to Expect From Episode 33

A major engine repair on a truck with as few miles as mine has is rare, but it does happen. If you don't plan and prepare for something like this to happen, it will probably be the end of your business. The biggest thing I did right was buying the extended warranty from the manufacturer of the truck. I learned a bunch of other lessons from this experience, I have listed some of them below. Listen to the episode for full details.

Lessons Learned

• Prepare a head of time
  • Buy an extended warranty, it's like insurance. I am usually not a fan of warranties on vehicles, but a truck is your business's lifeblood, it makes sense because a major repair in your first year will likely kill your business.
  • Roadside assistance. There are companies that provide a subscription type of service that includes some towing and roadside assistance. I am not as big a fan of this, I don't currently use it personally, but you might want to consider it.
• Have a plan for when it happens
  • Cover your personal budget. You either need to have personal savings to last you several weeks or you need to have a temporary employment plan. (There are trucking companies out there who will keep a driver on their books and use you when you are available.)
  • Consider renting a truck. Time of year will play a big factor in whether this is worth it or not.
  • Talk to your insurance agent. You might be able to reduce coverages while your truck is down.
  • Talk to your lender. They might be willing to let you skip a payment.

Take a deep breath, this is just a bump in the road and you will be able to get through it. Don't let yourself get focused on what is happening right now, look at the big picture.

#32. New Authority Brokers

One of the most common questions I get from people starting a new trucking company is how to find loads when so many brokers won't work with you. Even though we have had other episodes that talk about finding loads, I still get a lot of questions specific to getting through that first 90 days when your options with brokers is limited. So.... I decided to do a full episode dedicated to just that.

What to Expect From Episode 32

Craig and I dive into the specifics of working with brokers who will accept a brand new trucking company with a brand new trucking authority. We also talk about a list I created of brokers who will work with new authorities. Service and professionalism is the key. The list of brokers and some more pointers are available for free at motorcarrierhq.com. If you have found some other larger brokers who work with new trucking companies, let us know in the comments at the the Haulin Assets website.

#31. November Financials

Here's another episode where we cover the financials for Haulin Assets. November was an average month. The main reason was I was not on the road for as many days as I would have liked, and there is a reason for that that I'll get into in a future episode. Here is a quick overview, and Craig and I talk about all the details during the episode. Scroll to the bottom and you’ll see copies of the Profit and Loss Statement and the Balance Sheet.

• Total miles ran - 10,251
• Deadhead miles - 510
• Total revenue - $17,589.03
• All-in rate-per-mile - $1.74
• Full days on the road - 12
• Partial days on the road - 6

In the end Haulin Assets realized a profit of $2,065.39. Revenue was about the same as last month, but expenses were down, no repairs! Listen to the entire episode to learn more about the details.

To see full show notes and hear past episodes, check out the Haulin Assets website.

#30. Starting a Business In a Questionable Economy

I have had a lot of people talk about the economy and the current state of the trucking industry. Things are different now than they were last year. Last year’s rates were better than we had seen in a really long time. You couldn’t help but make money but that might not have been an entirely good thing. I think this year we are seeing some negative consequences from last year’s boom. So what does that mean?

What to Expect From Episode 30

During this episode, Craig and I talk a lot about the state of the owner-operator world. Things were really good for most people last year and a lot of companies and owner-operators made decisions that are now having a negative impact on the freight market this year. We break it all down and talk about what I think it means.

Wondering When to Start Your Trucking Company?

There are pros and cons to starting and running a business when the economy or an industry is struggling and we will talk about that. I use my experience of doing just that and some of the lessons I have learned over the years.

I know there are a lot of people out there asking themselves the question, “Is now the right time for me?”. That is a very personal question and I can’t answer it for you. I hope the info we share in this episode will arm you with some important information and thinking points to help you decide what is right for you in your situation.

 

To see full show notes and hear past episodes, check out the Haulin Assets website.