Accounting & Bookkeeping Services for Trucking Companies
We handle the books for trucking companies across Ontario and Canada. IFTA filing, fleet CCA, cross-border HST, owner-operator classification, per diem tracking, payroll for drivers, WSIB, CVOR compliance. From $100/month. 1300+ five-star reviews.
Trucking Accounting Is Not General Accounting
Trucking companies have accounting requirements that a general bookkeeper cannot handle correctly. IFTA fuel tax returns filed quarterly across every jurisdiction you operate in, fleet depreciation across CCA classes that differ by vehicle weight, cross-border HST on freight that produces quarterly refund cheques, owner-operator payments that CRA scrutinizes for worker misclassification, per diem meal allowances that reduce taxable income, WSIB premiums at some of the highest rates in Ontario and CVOR compliance that requires clean financial records. One mistake on the IFTA return or one misclassified owner-operator can cost tens of thousands of dollars.
We provide accounting and bookkeeping services specifically structured for trucking companies. Fleet-level cost tracking per truck, per driver, per route. Every fuel receipt categorized by jurisdiction. Every cross-border load zero-rated correctly. Every owner-operator relationship reviewed for CRA classification risk. When CRA audits your trucking company (and trucking is a high-priority audit target for worker misclassification), we handle the entire audit at no additional charge.
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Why Trucking Companies Need a Specialized CPA
| Challenge | What Makes Trucking Different | What We Do |
|---|---|---|
| IFTA fuel tax reporting | Quarterly fuel tax return filed with your base jurisdiction. Reports miles driven and fuel purchased in every state and province. Net tax owing or refund calculated per jurisdiction. Missing or late IFTA returns trigger penalties and potential CVOR sanctions. | IFTA returns prepared and filed quarterly. Fuel receipts organized by jurisdiction. Miles matched to trip sheets or ELD data. Refunds maximized by accurate jurisdiction allocation. |
| Fleet CCA (depreciation) | Different truck classes have different CCA rates. Class 10 (30%), Class 16 (40% for taxis/rental), Class 54 (zero-emission 100%). Trailers are separate from tractors. Getting the class wrong costs thousands in lost deductions every year. | Every vehicle classified correctly. CCA schedule maintained per unit. Immediate Expensing claimed on qualifying purchases ($1,500,000 CCPC limit). Disposal gains and recapture calculated on trade-ins and sales. |
| Cross-border HST | Freight shipped from Canada to the US is zero-rated (0% HST). You charge $0 in HST but claim full ITCs on all Canadian expenses: fuel, maintenance, insurance, office, professional fees. This produces quarterly HST refund cheques from CRA. | Cross-border loads classified as zero-rated. All Canadian expense ITCs claimed. HST filed monthly for monthly refund cheques. A trucking company with 60% US freight and $400,000 in Canadian expenses recovers $31,200/year. |
| Owner-operator classification | CRA targets trucking for worker misclassification. If CRA determines your owner-operators are employees, you owe back CPP, EI, income tax, WSIB and penalties for all years. This is the #1 audit risk for trucking companies in Canada. | Every owner-operator relationship reviewed against CRA criteria. Contracts structured correctly. Documentation maintained. CRA audit defence FREE if a reclassification audit is initiated. |
| Per diem and meal allowances | Long-haul drivers are entitled to claim a flat-rate meal allowance for meals consumed during eligible travel periods. The CRA-approved simplified method rate allows a per diem deduction that reduces taxable income without requiring individual meal receipts. | Per diem tracked per driver per eligible trip day. T4 reporting configured correctly. The deduction reduces the driver's taxable income and saves both employer and employee CPP/EI on the allowance amount. |
| WSIB at high rates | Trucking WSIB premium rates are among the highest in Ontario: $5.00 to $7.00+ per $100 of insurable earnings depending on classification. A 10-driver operation at $600,000 total payroll pays $30,000 to $42,000/year in WSIB premiums. | WSIB classification reviewed to ensure correct rate group assignment. Annual reconciliation filed. Clearance certificates maintained. Premium payment schedule managed. |
| CVOR compliance | Ontario trucking companies must maintain a Commercial Vehicle Operator's Registration. CVOR ratings are affected by safety violations, out-of-service orders and financial fitness. A poor CVOR rating leads to facility audits and potential suspension. | Financial records maintained to CVOR audit standards. Clean books support a strong CVOR facility audit score. We prepare financial documentation for CVOR reviews. |
| Maintenance cost tracking | Maintenance is the second-largest expense after fuel. Tracking cost per truck per km identifies units that are costing more to maintain than they generate in revenue. Without per-unit tracking, unprofitable trucks drain the fleet. | Maintenance costs tracked per unit. Cost per km calculated monthly. Repair vs. replace analysis provided when maintenance cost exceeds thresholds. Included in monthly financial reporting. |
What Our Trucking Bookkeeping Service Includes
| Service | What We Deliver | Frequency |
|---|---|---|
| Bank and expense reconciliation | Every transaction categorized: fuel by jurisdiction, maintenance by unit, insurance, permits, tolls, scale fees, lumper charges, broker commissions. Connected to QBO or Xero with automated bank feeds. | Weekly |
| IFTA return preparation and filing | Quarterly IFTA return: miles driven per jurisdiction, fuel purchased per jurisdiction, net tax or refund calculated. Filed with your base jurisdiction by the quarterly deadline. | Quarterly |
| Fleet CCA schedule | Every tractor, trailer, reefer unit and support vehicle classified and tracked. CCA calculated per unit. Immediate Expensing applied on qualifying additions. Disposal gains and recapture on trade-ins. | Annual (updated quarterly) |
| Cross-border HST (zero-rated refunds) | US-bound freight classified as zero-rated. All Canadian ITCs claimed. Monthly HST filing for monthly refund cheques. Reconciled to revenue and fuel/expense records. | Monthly |
| Owner-operator payments and T4A/T5018 | Owner-operator payments tracked. T4A slips issued for non-employee payments. Classification reviewed against CRA criteria. Documentation maintained for audit defence. | Per payment / Annual |
| Payroll for company drivers | Pay stubs, CPP/EI/tax calculations, per diem tracking, remittances, T4 preparation. Mileage-based or hourly pay configurations. EI exemption for 40%+ shareholders. | Per pay period |
| Per diem and meal allowance tracking | Eligible travel days tracked per driver. Flat-rate meal allowance calculated. Reported correctly on T4 or deducted as a business expense. Reduces taxable income for drivers. | Per pay period |
| Monthly financial statements | Income statement, balance sheet, cash flow. Trucking-specific: revenue per km, cost per km, fuel cost %, maintenance cost per unit, operating ratio. Fleet profitability by unit. | Monthly |
| WSIB management | Classification confirmed. Annual reconciliation filed. Clearance certificates maintained. Premium payments tracked and remitted on schedule. | Quarterly / Annual |
| T2 corporate tax return | From $400. Fleet CCA optimized. Cross-border revenue allocated. Owner-operator payments reconciled. Non-capital loss carry-forwards tracked for early-year losses. | Annual |
| CRA audit defence | FREE for all clients. Owner-operator reclassification defence, HST audits, income tax audits. We respond, attend, negotiate, object. Every audit, every year. | As needed (FREE) |
Trucking KPIs We Track Every Month
| KPI | Target | Why It Matters |
|---|---|---|
| Operating ratio | Under 95% | Operating expenses divided by revenue. Below 95%: profitable. Above 95%: thin margins. Above 100%: losing money on every load. We calculate this monthly. |
| Revenue per km | $2.00 to $3.50 | Total revenue divided by total loaded and empty km. The primary measure of rate quality. Dropping revenue per km signals rate compression or too much deadhead. |
| Cost per km | $1.50 to $2.80 | Total operating cost divided by total km. Includes fuel, maintenance, insurance, driver pay, permits, tolls. Must be below revenue per km to be profitable. |
| Fuel cost as % of revenue | 25% to 35% | The largest variable cost. Every 1% above target on $1,000,000 revenue costs $10,000/year. Fuel surcharge recovery tracked against actual fuel cost. |
| Maintenance cost per unit/month | Varies by age | New trucks: $500 to $1,000/month. Older trucks: $1,500 to $3,000. A unit consistently above $3,000/month may cost more to maintain than replace. |
| Deadhead percentage | Under 15% | Empty miles as a percentage of total miles. Every deadhead mile costs fuel and wear with zero revenue. Above 15%: dispatch optimization needed. |
| Driver cost as % of revenue | 30% to 40% | Total driver compensation (wages + per diem + benefits + employer CPP/EI) divided by revenue. The second-largest cost after fuel. |
| Fleet utilization rate | Above 85% | Percentage of available truck-days that generate revenue. Below 85%: too many trucks sitting. Above 95%: no spare capacity for breakdowns. |
We Report These KPIs in Your Monthly Financial Package. Every month, you receive a financial report with operating ratio, revenue per km, cost per km, fuel cost %, maintenance per unit and fleet utilization. When operating ratio climbs above 95% or a specific truck's maintenance cost spikes, you see it in the financials before it becomes a crisis. This is what separates trucking-specific accounting and bookkeeping from generic bookkeeping.
Fleet CCA: How Truck Depreciation Works
| Asset | CCA Class | Rate | Example: $180,000 Tractor |
|---|---|---|---|
| Tractors (over 11,788 kg GVWR) | Class 10 | 30% | Year 1: $54,000. Year 2: $37,800. Year 3: $26,460. |
| Trailers (dry van, reefer, flatbed) | Class 10 | 30% | $80,000 trailer: Year 1: $24,000. |
| Straight trucks (under 11,788 kg) | Class 10 | 30% | $95,000 truck: Year 1: $28,500. |
| Zero-emission vehicles (electric/hydrogen) | Class 54 | 100% | Full write-off in year one. $250,000 electric truck: $250,000 Year 1 deduction. |
| Immediate Expensing (CCPC) | Eligible assets | 100% (up to $1,500,000/year) | $180,000 tractor fully expensed in Year 1 under Immediate Expensing election. |
| Tools and shop equipment | Class 8 | 20% | $30,000 shop equipment: Year 1: $6,000. |
| Computer and dispatch systems | Class 50 | 55% | $15,000 TMS system: Year 1: $8,250. |
Immediate Expensing Can Write Off an Entire Truck in Year One. CCPCs can elect to immediately expense up to $1,500,000 per year in eligible capital purchases. A $180,000 tractor purchased through the corporation is fully deductible in the year of purchase. Compare to the standard 30% CCA: $54,000 in Year 1. Immediate Expensing accelerates the deduction by $126,000. The tax savings at 12.2%: $15,372 in Year 1 alone. Buy through the corporation. Incorporate before the purchase.
Trucking Client Results
Cross-Border Carrier, Brampton (12 Trucks)
A 12-truck cross-border carrier with $2,400,000 revenue and 70% US freight was not claiming zero-rated HST on US loads and was filing HST quarterly instead of monthly. We corrected the HST classification, switched to monthly filing (producing monthly refund cheques), recovered $18,600 in ITCs from the prior 4 quarters that had been missed, restructured IFTA filing to maximize fuel tax credits in high-tax jurisdictions, and implemented per-truck cost tracking. Monthly HST refunds: $9,100. Annual IFTA optimization: $4,200. Operating ratio reduced from 97% to 91% through cost visibility.
Owner-Operator Fleet, Windsor (8 O/Os + 4 Company Drivers)
CRA audited a Windsor trucking company for owner-operator classification. CRA proposed reclassifying all 8 owner-operators as employees: $142,000 in back CPP, EI and source deductions for 3 years. We reviewed every contract, demonstrated that each owner-operator owned their own tractor, bore their own fuel and maintenance costs, controlled their own schedule and worked for multiple carriers. We provided trip sheets, contractor agreements and invoices from multiple carriers. Result: 7 of 8 maintained as independent. Reassessment reduced from $142,000 to $18,400. Client saved $123,600.
Long-Haul Carrier, Mississauga (6 Trucks)
A 6-truck long-haul operation was not tracking per diem allowances for drivers and was not claiming Immediate Expensing on 2 new tractors purchased during the year ($360,000 combined). We implemented per diem tracking for 6 long-haul drivers ($14,400/year reduction in taxable payroll), claimed Immediate Expensing on both tractors ($360,000 deducted in Year 1 vs. $108,000 under standard CCA), set up IFTA filing, and corrected the WSIB classification (moved from a higher-rate group to the correct classification, saving $6,200/year in premiums). Bookkeeping Services →
Startup Carrier, Hamilton (3 Trucks)
A new trucking company with 3 trucks was operating as a sole proprietor at $420,000 revenue. We incorporated ($35 service fee + $273 government filing), performed a section 85 rollover to transfer 3 trucks ($480,000 combined) tax-free, registered for HST with zero-rated cross-border treatment (40% US freight), set up IFTA reporting, registered for WSIB, set up payroll for 3 company drivers with per diem tracking, and implemented salary-dividend optimization for the owner. Annual tax savings from incorporation: $36,800. Section 85 saved $22,400 in tax on the truck transfer.
Owner-Operator vs. Employee: The CRA Risk
CRA considers trucking one of the highest-risk industries for worker misclassification. If CRA determines that your owner-operators should have been classified as employees, the carrier owes back CPP (employer + employee portions), EI (employer + employee portions), income tax that should have been withheld, WSIB premiums and penalties on every late remittance going back up to 4 years.
| Factor | Supports Independent Contractor | Supports Employee (CRA Reclassification Risk) |
|---|---|---|
| Equipment ownership | Owner-operator owns or leases the tractor. | Carrier provides the tractor. O/O drives a company truck. |
| Fuel and maintenance | O/O pays their own fuel, maintenance, insurance and repairs. | Carrier pays fuel, maintenance and insurance for the O/O's loads. |
| Dispatch control | O/O can accept or decline loads. No mandatory dispatch. | Carrier assigns loads. O/O cannot decline without consequence. |
| Exclusivity | O/O hauls for multiple carriers. | O/O hauls exclusively for one carrier. |
| Financial risk | O/O bears cost of empty miles, breakdowns, cargo claims. | Carrier guarantees minimum revenue or compensates for downtime. |
| Invoicing | O/O invoices the carrier per load or per mile. | Carrier pays the O/O on a schedule without invoices. |
Cost of Reclassification
| Owner-Operators | Avg Annual Pay | Years | Estimated CRA Reassessment |
|---|---|---|---|
| 3 O/Os | $90,000 | 3 years | $58,000 to $82,000 |
| 5 O/Os | $95,000 | 3 years | $96,000 to $135,000 |
| 8 O/Os | $90,000 | 4 years | $142,000 to $198,000 |
CRA Audit Defence Is FREE for All Trucking Clients. When CRA initiates an owner-operator reclassification audit, we handle everything at no additional charge. We review every contract, prepare the documentation, attend every CRA meeting and negotiate the outcome. We have successfully defended contractor classification for hundreds of owner-operators. CRA Audit Services →
Trucking Bookkeeping Pricing
| Service | Fee | What Is Included |
|---|---|---|
| Monthly bookkeeping | From $100/month | Bank reconciliation, expense categorization by truck/jurisdiction, HST filing (zero-rated cross-border), monthly financials with operating ratio, revenue/cost per km, fuel %, fleet KPIs. |
| IFTA filing | Included with bookkeeping | Quarterly IFTA return. Miles and fuel by jurisdiction. Net tax or refund calculated. Filed on time. |
| Payroll (first driver) | $125/month | Pay stubs, CPP/EI/tax, per diem tracking, remittances, T4 prep, ROE filing. EI exemption for 40%+ shareholders. |
| Payroll (each additional driver) | $75/month | Same as above per additional driver. 10 drivers: $125 + (9 x $75) = $800/month. |
| Incorporation | From $35 (one-time) | Articles, share classes, minute book, BN, HST, payroll. Government fee additional. Bookkeeping clients: FREE (government fee only). |
| T2 corporate tax return | From $400 | Fleet CCA optimized. Cross-border revenue allocated. Owner-operator payments reconciled. Immediate Expensing. Loss carry-forwards. |
| CRA audit defence | FREE (all clients) | Owner-operator reclassification, HST audits, T2 audits. Full representation. Every audit, every year. |
Example: Cross-Border Carrier, 8 Company Drivers. Bookkeeping $100/month + payroll $650/month (1 first + 7 additional) = $750/month. IFTA included. HST filing included. Monthly financials with all trucking KPIs included. T2 from $400. CRA audit defence FREE. Compare to the typical trucking accounting firm charging $2,500 to $4,000/month. Know Your Exact Fee →
How We Onboard a Trucking Company
Connect
Bank feeds, fuel card accounts and dispatch/TMS data connected to QBO or Xero. Fleet inventory documented. Each unit tagged for per-truck tracking.
Classify
Every expense categorized: fuel by jurisdiction, maintenance by unit, insurance, permits, tolls. Owner-operator contracts reviewed for CRA classification compliance.
Track
Monthly financials with operating ratio, revenue/cost per km, fuel %, fleet utilization. IFTA filed quarterly. HST filed monthly for refund cheques. Per diem tracked per driver.
Protect
CRA audit defence active from day one. Owner-operator documentation maintained. IFTA records audit-ready. WSIB clearance certificates current. CVOR financial documentation clean.
Trucking Operations We Serve
Frequently Asked Questions: Trucking Accounting
Meet Your Experts
Sharad Gondaliya, CPA
Founder & Managing Director
Gondaliya CPA Professional Corporation
Sharad leads trucking accounting strategy: fleet CCA optimization, cross-border HST, owner-operator classification defence, IFTA compliance and salary-dividend optimization for carrier owners.
Vandana Goel, CPA
Senior Accountant
Gondaliya CPA Professional Corporation
Vandana manages monthly bookkeeping, IFTA filing, HST returns, per diem tracking, payroll for drivers and fleet financial reporting for trucking clients.
What Our Clients Say
1300+ five-star reviews from business owners across Ontario and Canada.
Trucking Bookkeeping from $100/Month. IFTA Included.
Fleet CCA, cross-border HST refunds, IFTA filing, per diem, payroll, CRA audit defence. Everything your trucking company needs. 1300+ five-star reviews.