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

302 Questions View all

Do tolls go on Retained Earnings?

I have an EZ Pass and pay the tolls and turn in the sheet with all the charges on it and am reimbursed on my settlement. Does this go in the Retained Earnings section and do I also have to enter them into the expenses as well or just the settlement side? If I have tolls that I am not reimbursed I assume they would then go into just the expenses side. Sorry for all the questions, this should be it that I can think of for a while, I hope.

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Since your getting reimbursed for the tolls, I'm pretty sure you don't need to account for them. If you paid out, lets say, $2500 in tolls and then were reimbursed$2500 there is no loss no gain. Here's whats going to matter. Is the company that's reimbursing you showing this as a reimbursement or as income paid to you? It should not be income it should be showing as a reimbursement. I work for a company that does toll reimbursement. On the weekly settlement it shows the tolls as a reimbursement. However on the 1099, they give me at the end of the year, the toll money is just lumped in and shown as income paid to me. Here's what you need to do. Find out exactly how the company that's reimbursing your tolls is accounting for it. If they are showing it as a true reimbursement then you don't need to account for your tolls because there not an expense for you. If there showing your toll reimbursement as income that's being paid to you, then you need to save a copy of your toll receipts and deduct them as expenses. Make sure to compare all of your settlements to the 1099 you receive at the end of the year. Hope this helps.

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GREAT ANSWER (thanks rwilliams6686). I'll just add one small bit, which I'm sure you included but I couldn't remember. IF the company does include the reimbursements as income, not only do you add the tolls as an actual expense but you'll want to add the REIMBURSEMENT for the tolls under the INCOME section of the settlement on ProfitGauges. This way it will allow your Tax Report to match your 1099.

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They have it listed in a reimbursements section that scales also go in. So I guess what I need to do is total up my settlements and make sure they are not including them in the 1099 and when I enter in my settlement it will just be off the toll amount? Do I understand that correctly?

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If you are only talking about balancing out your settlement all you'll really need to do is to add the Tolls Reimbursement into that section and then when you are expensing tolls on that same settlement you'll create a new EXPENSE account linked to the Retained Earnings category so this way it will deduct the tolls from settlement but not expense your business. I hope that makes sense.

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OK Aaron, I entered in the whole year's settlements and it exactly matched the 1099 and the tolls and scales are "true" reimbursements and NOT included in the 1099 amount. So my question is, do I even need to keep my scale receipts for the IRS since they are not even shown anywhere in the settlement section of Profit Gauges and are only being shown as a reimbursement from my company. Also any tolls that are not approved I put into the expenses section for tolls correct? Thanks again.

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Jeff, Yes if you have a Toll that is NOT reimbursed then you would keep that receipt and add it to the monthly expenses. That is the only time you need to keep a receipt - just when you have to prove that expense for your company.

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How should you handle reimbursements on the settlement entry when the reimbursement is not included in income, but in a separate section for reimbursements? To make the settlement match it is included in the settlement, but is never entered anywhere as an expense. Should it NOT be entered and just noted on the paper copy? Or should it be added onto the settlement as an expense and tied to retained earnings? If you don't offset the reimbursement anywhere does it make a difference? The settlement will then not match if it's expensed on there. Aaron, I know we talked, but this is confusing!

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John, You reimbursement of your tolls does not go into INCOME. Put it in Reimbursements and then expense tolls as a retained earnings if it shows up in your settlements. If it's not added in your settlement then you are fine and do not need to enter the expense at all.

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Jeff Perry will be eternally grateful.
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