Running a successful trucking business means knowing your numbers inside and out. The single most important tool for this is your Profit and Loss (P&L) statement. It’s a straightforward report that shows you exactly where your money is coming from and where it’s going. Let’s break down what goes into it.
Key Sections of a Trucking P&L Statement
Revenue (Money Coming In)
This is your top line—all the money your business earns before any expenses are taken out.
- Freight Charges: The primary income from hauling loads.
- Fuel Surcharges: The fees you collect to cover the cost of fuel.
- Accessorial Fees: Extra pay for detention, layovers, lumper fees, and other services.
- Other Income: Any other money you bring in, like leasing out equipment or brokerage fees.
Variable Costs (The Cost of Moving Freight)
These are the direct costs tied to hauling a load. If your trucks aren’t moving, you don’t have most of these expenses.
- Driver Wages or Owner-Operator Pay: The biggest expense for most carriers.
- Fuel: Your second-largest expense and the most volatile.
- Truck & Trailer Payments: Your monthly lease or loan payments.
- Insurance: Includes truck, cargo, and liability coverage.
- Tolls and Permits: The day-to-day costs of being on the road.
Fixed Costs (Your Business Overhead)
Also known as operating expenses, these are the costs you have to pay just to keep the business running, whether you’re hauling one load or one hundred.
- Office & Utilities: Rent for your office or your dedicated home office expenses.
- Salaries & Professional Fees: Pay for dispatch, admin staff, accountants, or lawyers.
- Technology: Subscriptions for your ELD, GPS, load boards, and TMS software.
- Marketing & Advertising: Costs for finding new customers.
- Maintenance and Repairs: This is a big one. It includes routine service like oil changes and tires, as well as unexpected major repairs.
- Depreciation: If you own your trucks, their value decreases over time. Depreciation is how you account for that loss in value as a business expense, which is important for tax purposes.
Net Profit (The Bottom Line)
This is the number that matters most. It tells you if you’re actually making money. The formula is simple:
Total Revenue – Total Expenses = Net Profit (or Loss)
Simple P&L Example for a Trucking Business
Here’s what it might look like for one month:
Revenue
- Freight Charges: $25,000
- Fuel Surcharge: $3,000
- Other Income: $500
- Total Revenue: $28,500
Expenses
- Fuel: $9,200
- Driver Wages: $6,000
- Truck Payment: $2,500
- Insurance: $1,800
- Maintenance & Repairs: $1,200
- Office/Admin Costs: $600
- Tolls & Permits: $400
- Total Expenses: $21,700
Net Profit: $6,800
Why Every Trucking Company Needs a P&L
A P&L isn’t just for your accountant. It’s a tool that helps you:
- See which lanes and customers are truly profitable.
- Spot rising costs, like fuel or insurance, before they hurt your bottom line.
- Get ready for tax time and show a bank you’re a solid business when you need a loan.
- Make smart, data-backed decisions about when to add another truck.
How to Get Started
You can always build a P&L in a spreadsheet like Excel or Google Sheets, but designing it to properly track everything takes time. To get started faster, many owner-operators and small fleets use pre-built templates.
If you want to skip the spreadsheet headaches and get a professional P&L statement designed for trucking, check out my Ultimate Trucking Accounting. It is easy to use, fully customizable, and will save you hours of work.
Final Thoughts
A profit and loss statement is the GPS for your business. It shows you where you’ve been and helps you map a route to a more profitable future. Don’t wait until tax season to understand your numbers—start tracking your P&L today.
