Bookkeeping and Accounting for Tow Truck Drivers

Need an accountant for your tow truck driving business? We handle your books, so you get more time to be on the road, helping stranded drivers. Try us for free.

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How Bench works with tow truck drivers

Experience peace of mind with your bookkeeping, income tax prep, and filing - all taken care of by experts, supported by a robust platform. Bench works seamlessly with tow truck drivers.

We get you set up

Our team takes the time to thoroughly understand your tow truck driving business, answer your queries, assist you in connecting your accounts, and guide you through the workings of Bench.

We do your bookkeeping

Each month, your dedicated bookkeeper sorts out your towing business transactions and prepares your financial statements. If they require any additional information from you, they'll reach out promptly.

We deliver tax-ready financials

Our team of experts understands the tax regulations specific to the towing business and will tailor their approach to your tow truck company's distinct requirements.

Here’s why tow truck drivers like you trust Bench with their bookkeeping and accounting

Get fast, unlimited support from our expert advisors

We'll keep you constantly in the loop with bookkeeping updates. Got urgent queries that can't be ignored? Rest assured, we'll respond to you within one business day or even less; tailored to meet the demands of tow truck drivers.

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Guaranteed accuracy in every detail

Bench Accounting equips you with a platform designed to automate data records from most principal providers and steer clear of frequent errors. We collaborate with key service providers such as Gusto, Stripe, Shopify, and Square, ensuring your towing business's finances are consistently on point.

See where you’re spending. Make smart decisions

Say goodbye to mountains of receipts and endless hours spent tracking finances—we automate inputs directly from your linked accounts. Get insights straight from one centralized dashboard so you can easily gauge the financial health of your tow truck operation, allowing you to make informed strategic decisions.

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Bench integrates with your favorite small business tools

We sync seamlessly with your financial accounts and tools to keep your books up-to-date and save you the time and effort of manually uploading documents.

Trusted by 25,000+ American small business owners

“Bench helped me replace QuickBooks, and save about 6 hours per month of horrible accounting work, which is priceless.”

CHRIS RONZIO

CEO, TRAINUAL
“This is the first year where it’s tax season and I don’t feel anxious one bit.”

DR. BUKKY KOLAWOLE

FOUNDER/EXECUTIVE DIRECTOR, RELATIONSHIP HQ
“Bench has lifted a giant weight off my shoulders and freed up my time so I can focus on earning money and working with clients, meetings and calls.”

HEATHER SHOLL

FOUNDER, THE VILLAGES GYM
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We know bookkeeping for tow truck drivers

For tow truck drivers, managing all financial aspects of your business can be challenging, but not with Bench Accounting by your side. We understand that your industry deals with unique scenarios such as road salvage claims, impound lot revenue, and variable vehicle storage fees all which have different tax implications. Our intuitive software works harmoniously with our team of dedicated bookkeepers who are well versed in these industry-specific cases, ensuring that you deal with minimal tax liability. Our expert team is updated with the constantly changing laws and regulations, from local road clearance policies to the Interstate Commerce Commission regulations, to ensure all aspects of your financial management are compliant and maximized for your financial benefit.

At Bench, we don't just take care of your numbers, we go by the mile. Common bookkeeping issues like tracking fuel expenses, maintenance cost, repair bills, and worker compensation pose no problem to us. Our software can accurately classify and record these expenses, ensuring no financial detail is left untracked. When tax season rolls in, we aid in organizing all the necessary tax documents, help you take advantage of relevant deductions and credits, and ensure that your taxes are filed on time, every time. With Bench Accounting, tow truck drivers can set aside their financial worries and focus on what they do best - keeping the roads clear and safe for everyone.

Simple, straightforward pricing for everything your business needs.

Get bookkeeping, tax prep, advisory, and filing with Bench's powerful, easy-to-use platform.

Choose Plan

Essential

Best for those looking for peace of mind and accurate financials done by professional bookkeepers.
$249/mo

billed annually

Dedicated bookkeeping experts
Accurate monthly books and year-end tax-ready financial packages
P&L, balance sheet and 1099 reporting
Unlimited communication with your bookkeeping team

Premium

Best for those looking for an all-in-one bookkeeping, tax advisory and income tax filing service.
$399/mo

billed annually

Everything in Essential plan
Dedicated team of licensed tax professionals to file your income tax return on time
Annual income tax filing for businesses (partnerships, S corps, C corps)
Annual income tax filing for individuals (sole proprietors, contractors)

Essential

Best for those looking for peace of mind and accurate financials done by professional bookkeepers.
$299/mo

billed monthly

Dedicated bookkeeping experts
Accurate monthly books and year-end tax-ready financial packages
P&L, balance sheet and 1099 reporting
Unlimited communication with your bookkeeping team

Premium

Best for those looking for an all-in-one bookkeeping, tax advisory and income tax filing service.
$499/mo

billed monthly

Everything in Essential plan
Dedicated team of licensed tax professionals to file your income tax return on time
Annual income tax filing for businesses (partnerships, S corps, C corps)
Annual income tax filing for individuals (sole proprietors, contractors)

Frequently Asked Questions

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What specific tax deductions can I claim as a tow truck driver?

As a tow truck driver, you may be eligible for a variety of tax deductions. Here are a few examples:

  • Vehicle expenses: Tow truck drivers can claim a deduction for the costs associated with running your tow truck for business purposes. This can include gas, repairs, maintenance, and even depreciation.
  • Office expenses: If you manage your business from home, you might be able to deduct part of your housing expenses. These can include a portion of your rent or mortgage, utilities, and property taxes.
  • Supplies and equipment: Purchases of any equipment needed for work, such as safety gear, towing equipment, necessary tools, and uniforms that are not suitable for everyday wear, may all be deductible.
  • Professional fees: Fees paid to accountants, lawyers, or industry consultants can be written off.
  • Insurance: Business-related insurance premiums, such as liability insurance, are usually deductible.

Note, it's important to keep meticulous records for all business-related expenses, as you'll need these in case of an audit. It's recommended to consult with a tax professional or an experienced bookkeeper who understands the specific nuances and laws related to your industry.

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How should I track and document income and expenses for my tow truck business?

Tracking and documenting income and expenses for your tow truck business can be done in several ways. The most efficient method is to use an accounting software program, ideally something cloud-based and accessible from anywhere. These types of programs can automatically record and categorize your financial transactions, saving you time and ensuring accuracy.

For income, you should document all payments received from customers and any other sources of revenue. Keep all receipts and sales transactions. You might also need to account for tips received, if applicable.

For expenses, save all receipts and document all your costs, no matter how minor they may seem. This includes not only obvious big-ticket items like truck maintenance and fuel, but also smaller costs like meals, office supplies, and communications expenditures.

Keeping track of your incomings and outgoings will not only help you maintain control of your business finances, but will also be crucial when it comes to tax time. Without an accurate record of your income and expenses, you might pay more tax than you need to or, worse, find yourself in trouble with the tax authorities.

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Can I depreciate my tow truck and how does that affect my accounting?

Yes, you can depreciate your tow truck. Depreciation is a way to spread out the cost of a large purchase over the life of the item, in this case, your tow truck. This is done for tax and accounting purposes. In accounting, depreciation allows you to allocate the cost of an asset over its useful lifespan. This reduces your taxable income, and thus, the amount of tax you owe.

Depreciation impacts your accounting by reducing the value of the asset (the tow truck) on your balance sheet over time. Meanwhile, it increases expenses on the income statement, reducing your net income. Despite this, your cash flow isn't directly affected because depreciation is a non-cash expense. Remember, you've already made the payment when you purchased the truck.

When depreciating your tow truck, it's recommended to adhere strictly to the IRS rules on depreciation. The IRS issues tables that indicate the lifespan of different types of assets. For tow trucks, which fall under five-year property (according to IRS), you can depreciate the truck over a span of five years.

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Does Bench outsource bookkeeping?

Nope! All bookkeeping is completed in-house.

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Will I have one point of contact?

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.

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How much time each month will I have to spend managing my Bench account?

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.

Bookkeeping Services for Tow truck drivers

Sign up for a Bench trial, and get one month free. If you decide to go with us, we’ll take bookkeeping off your plate—for good.

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