We will frequently provide you with updates on your bookkeeping. Have urgent queries that can't be put on hold? We guarantee responses within one business day or less, keeping your car rental service business moving smoothly.
Our platform streamlines the automation of data inputs from the key providers in your industry, mitigating potential errors. We collaborate with merchant providers significant to car rental services—which means your financial books are consistently accurate and up-to-date.
No more heaps of receipts and laborious manual logs—Bench Accounting streamlines your processes by automating inputs directly from interconnected accounts for your car rental service business. Gain clear insights from a single comprehensive dashboard, enabling you to effortlessly comprehend the fiscal health of your company and make informed strategic decisions.
DR. BUKKY KOLAWOLE
Your car rental service business can claim a variety of expenses to lower taxable income. These expenses can be broadly categorized into the following:
- Operating expenses: This would include things like fuel, repairs, maintenance, insurance and licensing fees.
- Depreciation: Your business might be able to claim a depreciation deduction for cars you own and use in your rental service.
- Interest on loans: If you've taken loans to purchase cars for your rental fleet, the interest on those loans can be claimed as an expense.
- Employee salaries: Payments to employees, whether they are mechanics, office staff or drivers, can be claimed as an expense.
- Marketing and advertising costs: Any money spent on promoting your car rental business can also be claimed.
- Costs related to your place of business: This includes rent, utilities, property tax, and other similar expenses.
Always consult with a professional tax advisor to ensure that you're taking full advantage of the deductions available to your car rental business and complying with all relevant tax laws.
Capital depreciation refers to the decrease in the value of an asset over time due to factors like wear and tear, obsolescence or economic factors. With respect to vehicles in a car rental service, depreciation begins the moment a car is bought and continues over its useful lifespan.
Depreciating assets, such as vehicles, for tax purposes can be beneficial for businesses. The annual depreciation expense reduces the net income, and therefore the amount of tax payable. In car rental services, the depreciation of the vehicles can be calculated and written off against the company's revenue each year, significantly reducing the amount of taxable income and thereby reducing tax liabilities.
There are different kinds of method to calculate depreciation, including Straight Line Basis, Declining Balance Method, and Sum of the Year’s Digits. The choice of method will depend on your specific business circumstances. It's recommended to consult with a bookkeeper or accountant to get a thorough understanding of which method is best and most compliant for your business.
The specific accounting needs for tracking multiple fleet vehicles and associated liabilities in a car rental business often involve a high degree of detail and organization. It is essential to have an organized system for tracking the various costs associated with each vehicle, such as maintenance, fuel, insurance, and depreciation. Additionally, understanding the liabilities associated with vehicle rentals, including accident-related costs and the legal implications of mishaps, is principal as well.
All these details significantly affect a car rental company's bottom line. They need to be monitored and recorded accurately for financial reports and to meet tax requirements. Employing a bookkeeper who is experienced in fleet tracking and associated liabilities can ensure that your financial records are expertly managed, freeing you up to concentrate on other aspects of your business.
Nope! All bookkeeping is completed in-house.
Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.
We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.