Bookkeeping Project of a US-Based Transport Company: Complete Accounting Guide with Payroll, Sales Tax & QuickBooks
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| Bookkeeping Project of a US-Based Transport Company with Payroll, Fuel Expenses, Sales Tax, and Financial Reporting |
- Business Overview (Case Study)
- Chart of Accounts (US Transport Company)
- Payroll Accounting for Trucking Companies (USA)
- Trial Balance and Profit & Loss
Introduction
The transport and trucking industry in the United States is one of the most expense-heavy and compliance-driven sectors.
Fuel costs, driver payroll, vehicle maintenance, insurance, tolls, and interstate regulations make bookkeeping far more complex
than atypical small business.
This bookkeeping project of a US-based transport company demonstrates real-world accounting practices used by
American trucking and logistics companies, including:
- Payroll accounting
- Sales tax treatment
- Expense tracking
- Financial statements
- QuickBooks Online workflow
This project is ideal for bookkeeping students, freelancers, virtual bookkeepers, and accounting professionals serving US clients.
Business Overview (Case Study)
Company Name: BlueRoute Logistics LLC
Industry: Transport & Trucking
Location: Texas, USA
Business Type: LLC
Accounting Method: Accrual Basis
Currency: USD ($)
Software Used: QuickBooks Online (US Version)
Services Provided
- Interstate freight transportation
- Contract trucking services
- Local delivery services
Why Bookkeeping Is Critical for US Transport Companies
US transport companies face:
- High fuel and maintenance costs
- Weekly driver payroll
- DOT & compliance expenses
- Multi-state sales tax complexity
- Cash flow challenges
Accurate bookkeeping helps:
- Track cost per mile
- Control payroll expenses
- Prepare tax-ready financials
- Avoid IRS penalties
- Improve profitability per route
Chart of Accounts (US Transport Company)
Assets
- Cash
- Bank
- Accounts Receivable
- Fuel Advance
- Trucks & Trailers
Liabilities
- Accounts Payable
- Payroll Liabilities
- Sales Tax Payable
- Truck Loan
Equity
- Owner’s Capital
- Owner’s Draw
Income
- Freight Revenue
- Contract Hauling Income
Expenses
- Fuel Expense
- Driver Wages
- Payroll Taxes
- Vehicle Maintenance
- Insurance Expense
- Toll & Permit Fees
- Office Rent
- Dispatch Software Expense
- Depreciation
Opening Balances (April 1, 2025)
| Account | Amount ($) |
|---|---|
| Cash | 12,000 |
| Bank | 40,000 |
| Trucks (2 Units) | 180,000 |
| Owner’s Capital | 232,000 |
Monthly Transactions (April 2025)
- Freight revenue received via bank – $65,000
- Fuel purchased – $18,000
- Driver wages paid – $22,000
- Employer payroll taxes – $3,300
- Truck maintenance – $6,500
- Insurance expense – $4,000
- Toll & permits – $2,200
- Office rent – $2,500
- Software & dispatch tools – $1,200
- Monthly depreciation – $4,500
Journal Entries (US Accounting)
Freight Revenue
Bank A/c....................Dr 65,000
Freight Revenue A/c........65,000
Fuel Expense
Fuel Expense A/c............Dr 18,000
Bank A/c..................18,000
Driver Payroll
Driver Wages A/c............Dr 22,000
Payroll Tax Expense A/c.....Dr 3,300
To Bank A/c..................25,300
Vehicle Maintenance
Maintenance Expense A/c.....Dr 6,500
To Bank A/c...................6,500
Depreciation
Depreciation Expense A/c....Dr 4,500
To Accumulated Depreciation...4,500
Payroll Accounting for Trucking Companies (USA)
Payroll is a major expense for US transport companies.
Includes:
- Gross driver wages
- Federal income tax
- Social Security & Medicare (FICA)
- State payroll taxes
Employer Payroll Taxes:
- Social Security (6.2%)
- Medicare (1.45%)
- FUTA (if applicable)
QuickBooks automatically calculates and posts payroll entries.
Sales Tax in US Transport Businesses
🚫 Interstate freight transportation is generally NOT subject to sales tax
✅ Local services (warehousing, loading/unloading) may be taxable depending on state laws.
Best practice:
- Classify taxable vs non-taxable services
- Use QuickBooks sales tax center
- Reconcile state-wise tax reports
Trial Balance (April 30, 2025)
| Account | Debit ($) | Credit ($) |
|---|---|---|
| Cash & Bank | 57,300 | |
| Trucks (Net) | 175,500 | |
| Fuel Expense | 18,000 | |
| Driver Wages | 22,000 | |
| Payroll Tax Expense | 3,300 | |
| Maintenance Expense | 6,500 | |
| Insurance Expense | 4,000 | |
| Toll & Permit Fees | 2,200 | |
| Office Rent | 2,500 | |
| Software Expense | 1,200 | |
| Depreciation Expense | 4,500 | |
| Freight Revenue | 65,000 | |
| Owner’s Capital | 232,000 | |
| Total | 297,000 | 297,000 |
Profit & Loss Statement
Blue Route Logistics LLC
Profit & Loss – April 2025
| Particulars | Amount ($) |
|---|---|
| Freight Revenue | 65,000 |
| Total Expenses | (64,200) |
| Net Profit | 800 |
🔎 Insight:
Even with high revenue, thin margins highlight the importance of route-level cost control.
QuickBooks Version – US Transport Company
Step 1: Setup
- Country: United States
- Currency: USD
- Accounting Method: Accrual
- Enable Payroll & Sales Tax
Step 2: Recording Income
- New → Invoice → Freight Revenue
- Mark service as non-taxable (interstate)
Step 3: Recording Expenses
- Fuel → Expense
- Maintenance → Bill
- Payroll → Automated payroll run
Step 4: Reports Generated
- Profit & Loss
- Balance Sheet
- Payroll Summary
- Expense by Vendor
- Mileage & Cost Analysis
Frequently Asked Questions (FAQs)
Below are some common questions related to bookkeeping for US-based transport companies.
What is a bookkeeping project of a US-based transport company?
A bookkeeping project of a US-based transport company is a practical accounting case study that shows how trucking and logistics businesses record income, expenses, payroll, and financial statements.
Is sales tax applicable to trucking services in the USA?
Interstate freight transportation services are generally not subject to sales tax. However, local services such as warehousing or loading may be taxable depending on state laws.
Which bookkeeping software is best for US transport companies?
QuickBooks Online is the most commonly used bookkeeping software for US transport and trucking companies because it supports payroll, expense tracking, and detailed financial reports.
What are the major expenses in trucking company bookkeeping?
The major expenses include fuel costs, driver wages, payroll taxes, vehicle maintenance, insurance, toll fees, and depreciation on trucks.
Why is proper bookkeeping important for transport companies?
Proper bookkeeping helps transport companies control costs, manage cash flow, comply with tax regulations, and accurately measure profit or loss for each route or vehicle.
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