Trucking accountant in Richmond

For a one-owner Richmond trucking company, the bundle of monthly bookkeeping, payroll and the year-end T2 with statements usually costs $450 to $650 a month all-in. A sole proprietor driver filing a T1 with a T2125 is commonly $250 to $450 for the return. The trucking and logistics accounting hub indexes the related guides.

Short-haul work around the airport and the river

Much of the trucking based in Richmond is short-haul. Air cargo runs between Sea Island and warehouses across Metro Vancouver, containers come and go from terminals up and down the river and the coast, and distribution trucks serve the shops and restaurants of City Centre and Ironwood. That work produces many short trips, a lot of waiting time at docks and terminals, and routes over the bridges and through the tunnel that change with the traffic. The bookkeeping consequence is volume: dozens of small invoices a week, each needing to tie back to a load sheet.

A trip-by-trip record matched to the carrier’s settlement statement is what makes revenue reliable. Carriers often pay owner-operators net of fuel advances, insurance, plates and other chargebacks. Recording only the deposit hides both the gross revenue and the deductible costs, so the settlement is broken out line by line.

Tractors, trailers and capital cost allowance

A tractor or a trailer is a capital asset, written off through capital cost allowance at the rate for its CCA class rather than expensed when it is bought. The half-year rule generally limits the claim in the year of purchase. Buying a unit just before year-end instead of just after can move a meaningful deduction into the current year, so a purchase date is worth discussing before the deal closes.

Leasing changes the pattern. Lease payments are generally deductible as they are paid, subject to the rules for passenger vehicles, which heavy trucks usually fall outside. Buying with a loan gives CCA plus deductible interest instead. Neither is better in the abstract; the right answer depends on profit, cash and how long the unit will be kept.

Fuel, repairs and input tax credits

Once registered for GST, a carrier recovers the GST paid on fuel, repairs, tires, parking and other taxable inputs as input tax credits. On a fuel-heavy business those credits are large, and they depend on keeping the receipts. A fuel card statement that shows the GST is usually enough; a total with no tax breakdown is not. The input tax credits guide sets out what the CRA expects to see.

PST works differently. PST paid on parts and equipment bought for the business is generally a cost rather than a credit, so it stays in the expense or the asset.

GST on freight that crosses a border

Freight carried entirely within Canada is generally a taxable supply. Some international freight movements are zero-rated, which means GST is charged at 0% but input tax credits are still claimed. For a Richmond carrier hauling air cargo or containers that are part of an international shipment, the distinction matters on every invoice. Coding a zero-rated load as taxable overcharges the customer; coding a taxable one as zero-rated leaves the carrier owing the tax. The zero-rated versus exempt guide explains the difference.

Drivers, owner-operators and payroll

A small fleet often has both employed drivers and owner-operators. Employed drivers get a T4, with CPP, EI premiums and income tax deducted each pay. Owner-operators invoice the business and look after their own tax. Who is which depends on who owns the truck, who controls the schedule and who carries the financial risk, not what the contract calls them. If the CRA decides an owner-operator was in fact an employee, the payer can be assessed for the deductions it did not take. Worker classification goes through the tests, and payroll in Richmond covers the pay runs.

Selling or trading up a truck

Short-haul units in Richmond traffic work hard, and many owner-operators replace a tractor every few years. The value received for the old unit comes off the CCA pool for its class. If more CCA was claimed than the truck actually lost in value, the difference comes back into income as recapture in the year of sale. If the class is left with a balance and no assets, the reverse can produce a terminal loss. Timing the replacement against the year-end changes both results, so the trade-in is worth a conversation before the dealer paperwork is signed.

Meals on the road and the records behind them

Long-haul drivers on eligible trips can deduct a higher share of meal costs than the general business limit allows, either from receipts or using the CRA’s simplified per-meal method. Short-haul drivers who return to Richmond each day usually do not qualify. Either way, a log showing where the truck went and for how long is what supports the claim. Trucking meal claims covers the rules.

Remote, from Abbotsford

EverStone is an Abbotsford CPA firm serving Richmond carriers remotely. There is no Richmond office and no local staff. Settlement statements, fuel card exports and logs come in through a secure upload link, questions go by email first, and returns are approved by e-signature, so nothing pulls a driver off the road. The same CPA handles the file all year. See what it costs before anything starts.