Just setting up my chart of accts, until now I've always used Excel. The system gave me a basic chart to set up for my Trucking company and includes Fuel Surcharge in the Income. Up until now I have always used a flat rate system, not tracking the fuel surcharge separately? Can anyone tell me why I would do this? Brokers often include a portion of the price I negotiate as surcharge, but it seems redundant to me since I can't get any sort of discounts or tax breaks (that I know of) anyway. It still has to be reported as income, so why the extra step?
Thanks to anyone who can help me understand,
N&C Trucking Inc
I hope I can help, but am not that familiar with how the trucking industry works.
You don't have to use the Fuel Surcharge in Quickbooks if you don't use it in your books. It would only be handy if you want to collect that data to see how your expenses break down to make sure you are charging a profitable rate. You can make the FUel Surcharge account inactive by going in to view your chart of accounts, pulling down the little carrot at the right of the account, and selecting "make inactive".
You might want to talk to your CPA to confirm you are not missing out on any tax breaks from not tracking fuel separately.
Hope that helps!