Bookkeeping and Accounting for Delivery Drivers

As a delivery driver, there are several expenses that could be eligible for tax deductions. These include:

• Vehicle expenses: If you use your personal vehicle for work, you can deduct expenses such as gas, repairs, insurance, and depreciation.
• Operating costs: This includes cell phones, apps, or other technology you use for work.
• Uniforms and work supplies: If you're required to wear a uniform or purchase work-related supplies, these costs can be deductible.
• Home office expenses: If you manage your delivery service from home, you may be able to claim expenses for a home office space.

Please note that the actual eligibility of these deductions may vary depending on your individual circumstances and local tax laws, so we would always recommend speaking to a tax expert or a bookkeeper first.

There are several steps you can take to effectively track your income and expenses in the delivery profession. Firstly, maintain a clear record of all your income, including tips and extra charges if applicable. Don't forget to note down your salary or wages from any employment you may have.

For expenses, keep track of every purchase or cost associated with your work as a delivery professional. These could include vehicle expenses, insurance, maintenance, and even costs associated with your mobile phone if it's used for work.

You could do all of this manually, but it’s much easier and more accurate to use a bookkeeping software, which can automatically categorize income and expenses, reconcile transactions, and generate financial statements. An experienced bookkeeper can also provide significant help in this process. Accurate bookkeeping will not only keep you tax compliant but also provide insights into your profitability and cash flow.

As a self-employed delivery driver, there are several special accounting considerations you should bear in mind. You'll need to closely track all your income and expenses, especially those related to vehicle use, in order to accurately complete your taxes. This includes fuel, repairs, maintenance costs, and potentially the cost or depreciation of the vehicle itself. Additionally, you can also deduct business expenses such as tolls, parking fees, and even certain percentages of your mobile phone bill if it's used for work. It's important to note that these deductions are typically only beneficial if they exceed the standard deduction. Always consult with a professional accountant or tax advisor to ensure that you are maximizing your deductions while still complying with tax laws.

Nope! All bookkeeping is completed in-house.

Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.

We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.