Frequently Asked Questions

I am a new Owner Operator and have always had my income tax taken off my pay cheque from my employer. How do I handle it now that I am working for myself?
 
A common mistake made by many new Owner Operators is ignoring their income tax responsibilities. Just because you no longer have source deductions taken off your pay cheques as an employee doesn't mean that you are any less responsible for paying your taxes. You are now responsible to pay your taxes in quarterly installments. A consultation with one of our tax experts can help you understand your tax situation and how you should budget for your tax liability.



What is the importance of understanding Cash Flow and how does it apply to me?
 
Your cash flow is one of the most important items that you need to understand to be successful as an Owner Operator. Start by determining exactly how much cash your business needs to generate to pay for all of your personal and truck related bills each and every month. Once you have this information, you can determine what your break-even point and you will know whether you are getting ahead or falling behind.



Why do I need a budget for my business? None of my friends who are Owner Operators have one.
 
A budget is your guide to a successful career in trucking. It is a measuring stick used to ensure that you stay on track with everything you want to accomplish. Comparing your monthly Profit and Loss statements to your budget will allow you to adjust when things get off track as they commonly do. The quicker you can adjust to an expense creeping up on you or your revenue deteriorating the more successful you will be.



What makes ATBS Canada Inc. different from the many other bookkeeping services that are available to me as an Owner Operator?
 
We at ATBS don't simply process your HST filings and annual tax returns for your fee. We actively get involved with your business. Beginning with your initial budget development to production of your monthly P&L's (profit and loss statements), we contact you to ensure you have an understanding of what you will need to be successful. We are also available for consultation on any area of your business. Important decisions like replacing your truck, changing carriers and any number of other business related issues should not be decided alone. We are your partner in business!



What is a P & L Statement and how does it help me be more successful as an Owner Operator?
 
As a client of ATBS we produce monthly Profit and Loss statements for you. These documents will tell you if you are getting ahead or if you are falling behind. A P&L itemizes all your expenses and revenue on one easy to read document for a period of time. It is a snapshot of your business. After you start in our program with monthly P&L's we then go a step further and compare your monthly P&L statements to the budget that was created. We then have the tools we need to shape your successful career as an Owner Operator.



How will one of ATBS Canada Inc's business consultants help me be more successful and what type of things do they do for me?
 
Business consultants at ATBS have years of experience in trucking. They will assist you in creating your personal budget. They will review your P&L statements against your budget. They will work with you to create appropriate action plans when your budget gets off track. They will also educate you in business basics. Some topics they will cover are fixed expenses compared to a variable, ROI (return on investment) and how do I use this calculation to make decisions on helping my business become more successful.



How do I decide when it is time to replace my current power unit or trailer?
 
This is a perfect example of a question that a business consultant gets regularly and the answer is completely different for each client. What is the operating cost of your older unit compared to the newer unit you are looking at? What is the increase in fuel economy you might be picking up? What is the decrease in maintenance cost by upgrading to a newer unit? How will the increased monthly payment affect your cash flow and profitability? These are the real questions. Too many Owner Operators purchase newer trucks based on emotion when the decision should be a business decision based on your numbers.



I am thinking of changing carriers. What are the things I should consider to help me make this decision?
 
Changing carriers or going completely independent are big decisions that should be discussed thoroughly with your ATBS consultant. Moving for a couple cents a mile can sometimes look attractive but when you do the numbers and really look at it in the long run you may be putting yourself in a bad situation. As an example a 2 cent a mile increase over a year at 10,000 miles per month is 120,000 @ .02 = $2400.00. This may seem like a good idea but what if it takes you 2-3 weeks to transition to the new carrier and get the miles you were previously used to? It would cost 2 to 3 times your net gain to make this transition. This is a business decision that needs to be worked out on paper to determine the proper plan of action.



I am thinking of becoming an ATBS Canada Inc. client. How do I make the change?
 
Simply call our office at 1-877-878-5829 and talk to one of our capable staff or you can fill out the application online and we will contact you. If you are doing nothing but working hard and paying your bills you are leaving money you have earned on the table. Budgets, Profit and Loss Statements and planning for success are essential to success. Stop messing around and join our team of professionals and let us work with you for your success.



As part of ATBS's services to new clients you review the past 3 years tax returns. Why do you do this?
 
The transportation industry is a significant element of the Canadian economy and as such it has its own specific rules under CRA (Canada Revenue Agency). Unfortunately too many Owner Operators leave the completion of their tax returns to people who know nothing about this industry and the specific rules of tax that must be followed. It is a fact that over 50% of the returns we review have been completed incorrectly.



What other services does ATBS Canada Inc. offer besides tax assistance?
 
ATBS offers a wide array of business services to help you run your business profitably. We offer a consulting service to let your talk to an experienced business consultant about your business. We offer quarterly tax estimates to help you be prepared for tax season. We also offer in depth analysis of your business.



What should I have for my tax return?
 
The first thing needed for an Owner Operator tax return is a detailed P&L to be used to determine Trucking income. The second is any additional "T Slips" received throughout the year from the government or a supplementary employer. Medical receipts, reciepts for organized sports for your children, RSP contributions or withdrawals, tuition, and copies of the previous year's returns are all required to complete a tax return.



When is the best time to start considering/preparing for taxes?
 
The best time to start considering taxes is during the summer. At this time you can go over your previous year's return and see exactly why you owed what you did and whether anything will be changing for the upcoming return. You can begin preparing estimated amounts owing or refunded for the up coming year.



Are there any specials considerations for taxes in the Trucking industry?
 
Yes. Owner Operators are business owners and need to consider themselves as such. Owner Operators have an income that fluctuates and they also most likely own a very large asset: their truck. The tax deductible amount of your truck changes each year. Owner Operators need to be aware of the amount for each year they are in business.



What can I expense as an Owner Operator?
 
In short you can expense anything you need to run your Trucking business. If you have a cell phone and use it on the road, then it is a business expense. If you are eating on the road, then this is also something that can be used as a business expense. For a total list, please consult with your ATBS representative.



I am considering becoming an Owner Operator, how can you help me?
 
ATBS encounters many new Owner Operators and seeks to put them on the road to success from day one. We go through the setup of your business with CRA as well as the creation of your initial budget and P&L. Our goal is always to get your business running smoothly from the start.