Logistics businesses often handle many small receipts and irregular billing. Clear vehicle and customer records help reveal whether the company earns enough after fuel, tolls, maintenance and outsourced trips.
Track costs by vehicle or route
Allocate diesel, toll, parking, repairs, insurance, road tax and depreciation to appropriate categories. A vehicle-level or route-level view makes profitability easier to understand.
Reconcile delivery work to invoices
Keep delivery orders, proof of delivery, trip sheets and customer rate agreements. Compare the completed jobs with invoicing and subsequent collections, especially where customers use monthly consolidated billing.
Handle subcontractors and advances carefully
Transport subcontractors, driver cash advances and reimbursable tolls should be documented. Distinguish staff advances, recoverable costs and supplier expenses in the ledger.
Review indirect tax and payroll separately
Service-tax treatment can depend on service category and current Customs rules. Employee or contractor status affects payroll and statutory responsibilities; do not decide solely from a job title.
Practical example
A delivery company earns more trips in one month but pays higher fuel and subcontractor charges. Reviewing revenue per route without its associated costs gives an incomplete picture of profitability.
Your practical checklist
- Create cost categories for each vehicle
- Match delivery orders with customer invoices
- Reconcile driver advances and subcontractor bills
- Review payroll, insurance and relevant SST rules
Frequently asked question
Can a driver cash advance be treated immediately as a transport expense?
Not always. The advance may need reconciliation against receipts and actual trip costs before its final accounting classification.
General information only. Requirements depend on your circumstances and may change. Regulated tax-agent, audit, legal or liquidation work is handled by appropriately qualified professionals.