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Released April 2011, ProfitGauges is the simplest yet most efficient accounting program for your trucking business.

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WAGES entries vs RETAINED EARNINGS

Hi there, I have two questions....

1. When I enter "wages" for two employees we have, should I enter the actual amount they get to deposit after taxes we pull from their paychecks? Should I use gross or net value here?

2. I'm also not sure if maybe I should use RETAINED EARNINGS for entering those wages, since those two employees I'm talking about is me and my husband...

and even there, do I enter gross or net value?

3. And what about all the taxes, all of the unemployment taxes and withholdings we put away each month? Where do I enter that if I do get to enter that?

Hope you can help.

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Hey there,

First off GREAT QUESTIONS. Hope this helps you out.

  1. When entering wages for employees you'll want to enter the full cost of having that employee. That would be the GROSS which includes the total amount of money paid for taxes and such for the employee.
  2. Since the two employees are you and your husband it would actually be better to use Retained Earnings so your reports look correct. However if you did enter as wages just remember that the reports are AFTER you've paid yourself so your PPM (profit per mile) and CPM (cost per mile) will be off so never compare with others when talking PPM since the majority of single truck owner operators do not pull their own wages out to get their PPM.
  3. With the taxes that you pay for staying in business I'd definitely add those under taxes since that is a cost of doing business.

If you're still a little confused or in need of more information please do not hesitate to contact us at support@letstruck.com or (855) 800-FUEL

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