Trucking & Transportation Accounting | Insight CPA Services

At Insight Accounting CPA in Mississauga, we offer accounting, tax planning, and advisory services for businesses across Toronto and the GTA.

Trucking & Transportation Accounting & CPA Services

By Bader A. Chowdry, CPA, CA, LPA | Contact us at (905) 270-1873

The trucking and transportation industry operates across complex regulatory frameworks that span provincial, national, and international borders. From per diem tracking and IFTA fuel tax compliance to cross-border documentation and owner-operator settlements, transportation businesses face accounting challenges that demand industry-specific expertise. At Insight Accounting CPA Professional Corporation, we provide specialized financial services for trucking companies, freight brokers, and transportation operators generating between $500,000 and $25 million in annual revenue across Ontario and beyond.

Trucking & Transportation Accounting Solutions

Per Diem & Driver Expense Management

Driver per diems represent one of the most significant tax planning opportunities for transportation companies. We help structure per diem programs that comply with CRA requirements while maximizing tax deductions for meal allowances. For owner-operators, we track actual expenses versus per diem allowances to determine the optimal approach for each driver’s situation. Proper per diem administration reduces taxable income while ensuring drivers receive fair compensation for time away from home.

IFTA Fuel Tax Compliance

The International Fuel Tax Agreement (IFTA) requires detailed tracking of mileage and fuel purchases across all jurisdictions where your fleet operates. We implement systems that capture trip data, calculate fuel tax liabilities by jurisdiction, and prepare quarterly IFTA returns. Our approach ensures you pay the appropriate tax where miles are driven while claiming credits for fuel taxes paid-minimizing both compliance burden and tax leakage.

Cross-Border Operations & Documentation

Operating between Canada and the United States creates layered tax and regulatory obligations including carrier authority requirements, customs documentation, and cross-border tax filing. We help Ontario trucking companies understand their US tax obligations, including potential state income tax nexus, federal heavy vehicle use taxes, and customs bond requirements. Our team ensures your cross-border operations remain compliant with both CBSA and CBP regulations.

Owner-Operator & Driver Settlement Management

For carriers working with owner-operators or pay-by-mile drivers, accurate settlement calculations are essential for maintaining driver relationships and financial accuracy. We track revenue by load, deduct appropriate expenses and fees, calculate insurance and permit allocations, and generate settlement statements that provide transparency to drivers while ensuring the carrier’s financial interests are protected.

AI & Automation for Transportation Accounting

The transportation industry generates massive amounts of data-from electronic logging devices (ELDs), GPS tracking systems, fuel cards, toll transponders, and dispatch software. Our Accounting Intelligence platform uses AI to automate the collection and analysis of this data, transforming operational information into financial insights without manual data entry.

Machine learning algorithms extract trip data directly from ELD systems, automatically calculating miles by jurisdiction for IFTA reporting and identifying discrepancies that require investigation. AI-powered systems reconcile fuel card transactions against vehicle mileage and tank capacity, flagging potential fuel theft or card misuse before they impact your bottom line.

For carriers managing owner-operator settlements, AI automates the calculation of revenue splits, fuel surcharges, and expense allocations-generating settlement statements instantly when trips are completed rather than waiting for manual processing. Natural language processing reads rate confirmation documents and bills of lading, extracting key terms and automatically populating accounts receivable records.

Predictive analytics help transportation companies optimize cash flow by forecasting receivables based on typical customer payment patterns, identifying which shippers consistently pay late, and modeling the impact of fuel price changes on profitability. The result is financial management that keeps pace with the speed of transportation operations.

Explore how our AI-powered accounting services can help your transportation company operate more efficiently while maintaining compliance across every mile.

Our Trucking & Transportation Services

  • IFTA & Fuel Tax Management: Quarterly fuel tax return preparation, mileage tracking by jurisdiction, and audit support
  • Per Diem Program Administration: CRA-compliant per diem structuring, driver documentation systems, and tax optimization
  • Cross-Border Compliance: US tax registration, carrier authority maintenance, and international operations structuring
  • Owner-Operator Settlements: Load revenue tracking, expense allocation, and automated settlement statement generation
  • Fleet Accounting & Reporting: Vehicle-specific profitability analysis, maintenance cost tracking, and equipment depreciation optimization
  • Safety & Compliance Financial Support: CVOR rating impact analysis, insurance optimization, and safety program cost tracking

Industries We Serve

We work with long-haul trucking companies, local delivery services, flatbed and specialized carriers, refrigerated transport operators, freight brokerages, and owner-operator fleets. Our understanding of the transportation industry extends from single-truck operators to multi-asset fleets operating across North America with complex inter-jurisdictional obligations.

Frequently Asked Questions

How does IFTA work for Ontario trucking companies?
IFTA simplifies fuel tax reporting by allowing carriers to file a single quarterly return covering all member jurisdictions instead of separate filings in each state or province. You track miles traveled and fuel purchased in each jurisdiction, then IFTA calculates the net tax owed or refundable based on where you drove versus where you bought fuel. We implement tracking systems that capture this data automatically from your operations.

What are per diems and how do they benefit drivers?
Per diems are non-taxable meal allowances paid to drivers when they’re away from home overnight. For employers, per diems are deductible business expenses. For drivers, properly structured per diems reduce taxable income while ensuring fair compensation for meals on the road. We help implement CRA-compliant per diem programs that maximize benefits for both carriers and drivers.

What US tax obligations do Canadian trucking companies face?
Operating in the United States may create state income tax nexus depending on miles driven and revenue earned in each state. You may also face federal heavy vehicle use tax (HVUT), Unified Carrier Registration (UCR) fees, and various permit requirements. We help Canadian carriers understand and comply with these obligations.

How should we structure owner-operator relationships?
Owner-operator arrangements must clearly distinguish between employees and independent contractors for tax and legal purposes. We help structure agreements that properly classify drivers, track revenue and expenses accurately, and generate settlement statements that provide transparency while maintaining CRA compliance.

What records do we need to keep for transportation accounting?
Essential records include trip logs with origin/destination/miles, fuel receipts with location and vehicle identification, toll and permit documentation, maintenance records, and driver settlement records. We help implement systems that capture this data with minimal administrative burden while ensuring audit-ready documentation.

How can we improve cash flow in the trucking business?
Trucking companies often face cash flow gaps between paying expenses (fuel, drivers, maintenance) and receiving payment from shippers. We help optimize cash flow through factoring analysis, fuel card program selection, fuel surcharge management, and customer credit analysis that identifies slow-paying accounts before they become collection problems.

Ready to streamline your transportation company finances? Contact Insight Accounting CPA Professional Corporation at (905) 270-1873 or visit insightscpa.ca for a consultation. Let’s build financial systems that keep your fleet moving profitably.

Serving Ontario trucking and transportation companies with accounting that travels as far as you do.