My FY2010 income statement

[allan5oh]

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My corporate fiscal year runs from July 1/09 to July 1/10. I don't know why fuel disappeared from the first line. A few things to notice:

First of all the paid miles vs. hub miles is very close. This is due to the company paying practical miles, and my speedometer being about 1% out(reads 1% lower than actual).

Second the repairs/maintenance is sky high due to many factors including new tires on the trailer, new steers on the truck, injector cups, air compressor, clutch, new tarps, on and on etc.. A lot of that cost is legacy, in other words one time costs that won't happen again.

Third the gross per mile is actually low because this is before fuel started to go up again. Right now we're running at about $1.72 FSC in.

While doing spreadsheets like this I try not to add too many lines, break down every cost etc.

[Mackman]

thanks for sharing. I would pst mine but you will all laugh lol.

[Steel Horse Cowboy]

thanks for sharing. I would pst mine but you will all laugh lol.

According to my tax guys magical calculator, I make $36,000 last year

[snoopyandpuppy]

So if I read your file correctly, you are "netting" about 65 cents a mile? 100K miles and $65K pay...roughly.

[allan5oh]

Yes that's correct. Of course taxes come out of that, but there's too many factors there.

[rank]

This is an age old debate but I count a few more expenses than that. Meals, cell phone and internet to name a few. There is also depreciation on the truck that I don't see there....not sure what that's about since it can never be 100% depreciated.

Funny thing about legacy costs....there always seems to be a new legacy cost to replace them. 3 Fifth wheels, 2 sets of rods and mains, 5 injectors, radiators, 2 CACs, tires, rears, drums and shoes, camshafts, ECM's, wiring harnesses, turbo's (I know a guy that put 3 on 12 months...warranty yes, but not the labour and down time), ABS computers, ABS sensors, windshield wiper pivot assy's (don't laugh $1300), head gaskets, EGR coolers, EGR valves, $130 headlight bulbs, Variable Valve Actuators, rusted air tanks, leaky rear main seal, bunk heater, APU rad, APU starter, auto slacks, S cams, steering shaft, drag link, king pins, eight leaky air springs, broken leaf springs, stupid broken $10 electrical wire that leaves you stranded on HWY 401 waiting for a $500 tow and a $500 repair bill.........and that's if you don't hit anything.

Would you say your costs are $.46 per mile + driver then? That seems incredibly low. Our fuel costs alone are $.82 CDN right now....($1.234/L @ 6 MPCDNG).

[allan5oh]

This is an income/cash flow statement, not a balance sheet. I take depreciation as payments (hence trailer payments). Sure trucks and trailers depreciate slower than they can be paid off, however I find this paints a rosier picture of cash flow. What good is the value in the paid off truck when I need the truck to make money? That's why I depreciate it to $0 when the payments are made. What is reported to the Canadian government is different.

I'm not going to keep meal receipts because I don't need to.

Also this was from July 1st 2009 to July 1st 2010, since that is my corporate year. My cost for that year was 90 CPM. This year there will be less maintenance but fuel has taken up the slack.

[rank]

Sure trucks and trailers depreciate slower than they can be paid off, however I find this paints a rosier picture of cash flow. What good is the value in the paid off truck when I need the truck to make money? That's why I depreciate it to $0 when the payments are made.

I understand, but I don't like that system. To determine my cost per mile, I use the price I paid and fair market value....whether the equipment is paid off or not.

[QUOTE=allan5oh;497385I'm not going to keep meal receipts because I don't need to.[/QUOTE]
Do you have meal expenses? If you have meal expenses then they should be reported on an income/cash flow statement. The "I have to eat anyway" argument doesn't wash because you don't eat in a restaurant the way one does on the road.

Even things like lawn care for your house are, IMO trucking expenses because, due to the nature of your work, you are not able to mow your own lawn and therefore must contact it out. Unconventional perhaps, but the most accurate IMO.

[no_worries]

Meal expenses are not a total business expense because they aren't redundant. Tax authorities do recognize the added burden, hence the M&IE deduction. Besides, paying more to eat on the road is a choice. I spend more at home. When you mow your own lawn, you spend time. Time has value. How much would someone have to pay you to mow THEIR lawn? Is it more or less than what you pay to have yours done? If they would have to pay you more, you're actually coming out ahead by paying someone to mow your lawn. This, of course, doesn't include any "other" benefit you get, but that's not a financial consideration.

Proper financial accounting would match the depreciation to the useful life. This usually isn't done because a dollar today is worth more than a dollar tomorrow, but it gives the most accurate picture of cost/mile.

[allan5oh]

I understand, but I don't like that system. To determine my cost per mile, I use the price I paid and fair market value....whether the equipment is paid off or not.

My point is that if a guy is going broke, but his income statement shows he isn't (because it shows depreciation instead of payments, which the former is always lower than the latter) what's the point? He's still going broke!

What is fair market value? Are you getting your equipment appraised at the end of every fiscal year?

Do you have meal expenses? If you have meal expenses then they should be reported on an income/cash flow statement. The "I have to eat anyway" argument doesn't wash because you don't eat in a restaurant the way one does on the road.

True, but I can survive on less than $15 a day, and eat well doing it. Even $10 a day isn't hard to swing. And I'm out maybe 180 days a year.

Even things like lawn care for your house are, IMO trucking expenses because, due to the nature of your work, you are not able to mow your own lawn and therefore must contact it out. Unconventional perhaps, but the most accurate IMO.

That's what the girlfriend is for!

[rank]

My point is that if a guy is going broke, but his income statement shows he isn't (because it shows depreciation instead of payments, which the former is always lower than the latter) what's the point? He's still going broke!

Well why didn't you say so. If that's your point then we are in full agreement.

That's what the girlfriend is for!

Don't even get started on those expenses.