To remain profitable in the transportation industry is a challenge these days. Without a proper way to track and control operational expenses for your trucking company, you run the risk of going out of business.
One way to gauge profitability is to accurately calculate the cost per mile for each of your trucks. That way, you’ll have a better understanding of your expenses when it comes time to charge your customers.
With strong bookkeeping and accounting practices in place, calculating your cost per mile starts with your company’s expenses. In the transportation industry, expenses typically fall into three categories: fixed costs, variable costs, and payroll.