In the heart of California’s agricultural hub, trucking and logistics companies play a vital role in moving goods efficiently across the region. However, the financial demands of operating a fleet are complex and constantly under pressure. For carriers and logistics providers, success depends on more than driving loads. It requires disciplined accounting, cost control, and proactive financial strategy.
At DeMera DeMera Cameron, we have worked with trucking and logistics firms in the Central Valley and beyond for decades. Whether you are a small local carrier or a regional operator, sound financial management can make all the difference. Here is what you need to know this year and how to make informed financial decisions.
Fleet Costs and Expense Management
Operating a fleet involves managing a range of significant expenses, including fuel, maintenance, tires, parts, and driver compensation. Keeping these costs under control is essential for profitability.
Fuel Costs and Efficiency
Fuel is one of the largest variable expenses in the trucking industry. Tracking fuel usage carefully, optimizing routes, and investing in fuel-efficient vehicles can help maximize meaningful savings. Businesses using off-road fuel for qualifying activities may also be eligible for a Fuel Tax Credit.
Maintenance, Repairs, and Depreciation
Maintenance costs and repairs should be tracked by vehicle to measure profitability and plan replacements. Properly accounting for depreciation can also reduce taxable income. Trucks and trailers typically qualify as depreciable assets under IRS Publication 946.
Driver Pay and Labor Costs
Driver compensation and retention remain among the most important factors for profitability. Tracking hours, benefits, and bonuses accurately helps control labor costs and avoid compliance risks while maintaining driver satisfaction.
Regulatory Compliance and Cost Implications
Trucking companies face stringent regulations across various areas, including emissions, hours of service, weight compliance, and insurance coverage. Integrating accounting systems with compliance tracking can save time, reduce risk, and maintain financial accuracy. Documentation of maintenance, fuel, and payroll records ensures readiness in case of an audit or inspection.
Tax Strategies for the Road Ahead
2.5MM for Section 179 and Bonus Depreciation
Trucking companies can leverage Section 179 to deduct up to 2.5MM in qualifying equipment purchases immediately. Bonus depreciation can further reduce taxable income for qualifying new or used equipment placed in service within the year.
Accurate Job and Load Costing
Tracking cost per mile and revenue per load helps reveal which routes and contracts are most profitable. Treating each job as a standalone financial record improves pricing decisions, strengthens long-term profitability, and helps your records remain organized and accurate.
Common Mistakes to Avoid
Ignoring Cost per Mile Metrics
Without tracking cost per mile, carriers risk mispricing contracts and losing profit per trip.
Not Matching Revenue and Costs
Delays in billing or misclassified expenses can create misleading reports.
Outdated Software
Disconnected or outdated trucking software systems lead to data errors and missed opportunities for optimization.
Overlooking Equipment Deductions
Some trucking businesses fail to claim eligible deductions for parts, accessories, or vehicle depreciation.
What This Means for Your Business
Trucking and logistics companies in the Central Valley face thin margins and rising costs. The difference between successful and struggling Central Valley trucking businesses often lies in how well finances are managed. Treat accounting as a strategic tool, not a back-office task.
At DeMera DeMera Cameron, we help trucking and logistics firms:
- Track cost per mile and improve job costing accuracy
- Leverage fuel and equipment tax deductions
- Stay compliant with financial and regulatory standards
- Build accounting systems that deliver real-time visibility
Ready to strengthen your bottom line? Contact DDC today to keep your business moving forward with confidence.