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The following
article was published in the July issue of Overdrive Magazine.
The complete magazine can be found at
www.overdriveonline.com
Trucking
Software: An investment in better business.
By Deborah Lock Ridge, July 1998.
The typical owner-operator pays an
accountant more than $900 a year for bookkeeping services. But
for truckers who keep their own financial records, that number
drops to less than $600, according to research by Martin Labbe &
Associates. But if you keep those records by computer, you'll
not only save money on accountants, but you'll also be able to
keep a close eye on your business. Find out what your cost per
mile is this week, compared to last year. Figure out if a
particular route is profitable. Are maintenance expenses going
up? Maybe it's time to think about buying a new truck.
Using a computer can save you money, but you may find you end up
spending just as much time in front of the monitor as you would
entering information in a ledger. That's what Labbe's research
indicates. "It may be that owner-operators who use computers for
bookkeeping spend more time than owner-operators with ledgers
because they spend more time analyzing their operations," he
says.
The research shows 35 percent of owner-operators surveyed used
computers for recordkeeping. Most of them used a regular money
management/accounting program such as Quicken or QuickBooks.
However, there is a growing number of trucking-specific
accounting programs that offer many benefits over a general
accounting program. Expense categories are already set up for
trucking needs. They may include extras such as maintenance
schedules, routing, fuel tax calculations and log book
reporting. Many were designed by owner-operators who know what
truckers need.
For this article, we chose to focus on accounting/bookkeeping
programs designed for owner-operators and fleets of less than 10
trucks. In addition to information provided by the manufacturer,
we've included the comments of a panel of four owner-operators
who use computers and reviewed the programs for us.
But don't take our word for it. Most companies offer demo disks
through the mail or downloadable from their websites. Look at
the program and ask yourself if it does what you want. If you're
hauling with your own authority, you want a program that will do
it all. If you're a leased owner-operator, you may find that
some programs do more than you need - and cost more because of
it. So do your homework, and you'll soon know where every penny
went at the touch of a keystroke.
Computerized Management Systems
Computerized Management Systems' software is the most expensive
we tested, but our reviewers were enthusiastic about its
capabilities for a small trucking operation with its own
authority. TruckCom is a DOS-based program that has been offered
for 10 years, and it will run on the Windows 95 platform. It can
be used for up to 99 trucks. You can purchase only the modules
you need, such as accounting or dispatch, starting at $199. It
can go up to $2,000 if you need all the modules. The company
also offers TruckWin, for up to 999 trucks, but the cost is
$5,000. The average customer has 25 trucks.
Our panel was impressed by the ease of use, with standard
Windows pull-down and icons for common activities. "The demo was
easily loaded, with easy-to-understand language," says Becky
Treff, whose husband, Dennis, is leased to Land star Ranger.
"Each module was carefully explained and examples given."
The support line got high marks from one reviewer; others said
the program was so easy to use, technical support was
unnecessary.
The comprehensive program features modules for dispatch,
accounts payable, accounts receivable, payroll, freight billing,
revenue settlements and a soon-to-be-released fuel tax module.
It also interfaces with PC-Miler. There is an abundance of
easy-to-use reports, such as vendors, invoice aging, cash flow,
1099, fuel tax, etc. "If you have enough trucks to justify the
cost, this has more advantages over a program like Quicken or
your own spreadsheet than can be listed," says Jane Connors, who
runs Connors Refrigerated Transport out of Florida.
However, the program is more than a single owner-operator needs,
Treff notes. Connors agrees. "This program is probably suitable
only for five or more trucks," she says.
Jack Norris, who leases his tractor-trailer to Roberts Express,
recently hired a driver and has been looking for software that
will handle payroll. "This is a business solution for the
serious business person," Norris says. "It's a keeper."
Demos are available, but there is no money-back guarantee. The
company offers a toll-free support line, but charges $60 per
hour. There is some online support through a website FAQ.
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