Haulin Assets

#42. How To Prepare For A DOT Safety Audit

This is the second episode of a 3 part series where I go over some of the most important aspects of compliance with the DOT and FMCSA regulations for motor carriers. This specific episode covers preparing for a DOT Safety Audit.

What to Expect From Episode 42

Even if you don't have a DOT Safety Audit on the horizon, you should always be prepared for one. Going through the process of preparing for an audit is a good way to make sure you are following all the regulations and won't get caught with your pants down if you are audited. If you have all your records organized and are maintaining them as required, you are doing 90% of what is required by the DOT, the other 10% is really just following the rules like obeying traffic laws and following the hours of service regulations.

A DOT Safety Audit is a review of a carrier's records designed to verify that you have basic safety management controls in place to ensure compliance with the regs. Motor Carrier HQ has an audit assurance package that we spent years developing that is designed to help you make sure you are maintaining your records in compliance with the FMCSA Regulations. You can learn more about the Audit Assistance Package by clicking this link.

Audit Overview

Because I feel like the package that we developed, with the help of some DOT auditors, does such a great job, Craig and I spend a lot of the episode going over each part of the package and break down what records motor carriers are required to keep. To see the complete overview, including 16 items that will cause an automatic failure of a DOT Safety Audit, click through to the full show notes.

#41. What Is the FMCSA CSA Program?

Over the next three episodes, I am going to take a deep dive into the FMCSA's safety program. For most people, compliance with all the FMCSA's rules and regulations is a daunting task that many are too intimidated to handle.

I think there would be a lot of really good people who would make the jump to being an independent owner operator if this one thing did not seem so overwhelming. I hope these next few episodes can show people that it's not too hard, and they can do it if they are willing to learn and pay a little bit of attention to detail.

What To Expect From Episode 41

CSA (Compliance, Safety, Accountability) is the program the FMCSA uses to monitor the safety of trucking companies. During this episode I am going to explain how it works, the most important details and things to avoid that will get you in trouble.

The CSA Program is designed to do four things:

1. Identify motor carriers that pose a safety hazard.
2. Intervene with identified motor carriers so they can correct safety problems.
3. Assign motor carriers safety ratings.
4. Prohibit motor carriers that receive an “Unsatisfactory” safety rating from operating CMVs.

Craig and I will cover them all in detail during this episode, but if you want more of the nitty-gritty, click through for the full show notes.

#40. February Financials

I'm getting February's financials out a week earlier than I normally would, because I'm going to do a three-part series on safety and compliance, and I want to be able to do them all in a row, without interruption. Here is a sneak peek for what the episodes will be about.

• Episode 41 - What Is the FMCSA CSA Program?
• Episode 42 - How To Prepare for a DOT Audit
• Episode 43 - How To Pass a DOT New Entrant Audit

What To Expect From Episode 40

February could have been worse. I had to take more than half the month off because of my military service, so I didn't start my first load until the 18th. With that being said, I still made a profit. Here is a quick overview. 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 - 4,668
• Deadhead miles - 247 (5%, Much better than last month)
• Total revenue - $10,087.00
• All-in rate-per-mile - $2.16
• Full days on the road - 5
• Partial days on the road - 4

In the end Haulin Assets realized a profit of $2,427.52, which is pretty good for having to have the truck sit for over half the month.

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

#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.