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Question
My husband and I started our own transporting business. We transport vehicles via a dually truck and a 3 car hauler/trailer.
We receive payments directly from our customers who are either individuals, auto lots or brokers in the form of cash and checks.
We are responsible for all over the road expensesincluding; gas, tolls, weight checks, lodging and meals while on the road. We also pay monthly expenses for auto insurance, cargo insurance, truck expenses, business (cell)phones, internet, web membership, advertising, and office supplies. Annually we will pay registration fees and other federal fees towards operating our vehicle over state lines, etc.
As we just started, our first run yeilded no profit after over the road expenses. I didn't even include the monthly business expenses and annual registraion and federal fees. We basically made no money. If I need to report a weekly income, would I report what we made before over the road expenses are deducted or after they are deducted?
Dear Kammy Harjes,
First and foremost, I apologize for the delay, I got caught up with deadlines and this, is the result.
Congratulating on you new business and on your clear understanding of the ins and outs of it. Usually, a business in the development stage makes no profit, breaking even is a plus because the owner is in the learning process, which by the way, is costly.
With that said, income is always reported by the gross amount and from there, you subtract the expenses, including a provision for self-employment and social security taxes.
Keep your records up to date, that way, you will build an information and accounting system very useful for decision-making. A crucial part of the recordkeeping process is have proper back up for each transaction, make sure that you have your supporting documentation in a safe place, especially those documents considered permanent records such as insurances, licenses, etc.
I wish you and your husband much success in your business endeavors.
Sincerely,
Consuelo Herrera, CAMS, CFE
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Consuelo Herrera, International Accountant and Fraud Examiner
Expertise
I can answer questions concerning internal and operational auditing, fraud prevention procedures, internal control, the Sarbanes-Oxley Act, COSO control concepts, and management oriented auditing. I would love to provide business-owners with suggestions on how to prevent and detect fraud so that they are proactive in protecting their wealth since the very beginning of their entrepreneurial affairs. I can answer questions to both English and Spanish population. I am very committed to keep my standards up today so I know many resources where I can direct those seeking advice.
Experience
I have rendered services for private companies, profit and non for profit, in two countries. As independent consultant I have provided advice to managers in implementing procedures that streamline their operations and enhance their activities. As a staff accountant in a US CPA firm, I performed regular auditing procedures for different engagements.
Organizations
AICPA (American Association of Certified Public Accountants), ACFE (Association of Certified Fraud Examiners), ACFEI (American College of Forensic Examiners.
Education/Credentials
Bachelors of Sciences in Business Administration – Accounting
University of South Florida USF – Tampa Florida
Catholic University – Colombia
Title earned: Specialist in Tax and Customs
Central Foundation University – Colombia
Title earned: Certified Public Accountant.
On August, 2006 I passed all four sections of the Certified Fraud Exam which tests for proficiency in the following areas: Criminology and Ethics, Financial Transactions, Legal Elements of Fraud, and Fraud Investigation.
Awards and Honors
As employee of Forensic Technology Inc. a Canadian company with locations and sites worldwide, I was the winner of the 2005 President's award in the category of Cost Savings through Efficiency or Innovation granted in January 2006 in Montreal, Canada.
Past/Present Clients
I have provided advice to all kind of companies: manufacturing, service, consulting, non for profit organizations, etc.
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