Boom or Bust

2018 was a banner year for many in the transportation industry. Rates were high, fuel was relatively low and freight was abundant. As with any boom year, new entrants were attracted to the industry and capacity rose. If you entered this industry in 2018, then 2019 might have been a year to reckon with. 2019 was not without its ups and downs. For many drivers with a few years under their belts, planning ahead in 2018 was essential. A boom year is great, but it is not everlasting.

2019 brought about its own set of challenges, from over capacity to a reduction in freight availability. For all those who used 2018 as a benchmark, 2019 could have been a major disappointment. For those who recognized 2018 for what it was, 2019 was a great year. Compared to 2017, 2019 was a boom year.

What does 2020 have in store? Only time will tell, but proper planning and money management can be your keys to success in just about any economy.

How do you track your business? There are as many ways to track revenue and expenses as there are people tracking their numbers. This can be a daunting task for anyone not accustomed to doing their own bookkeeping. You do not need to be an accountant to track your numbers, but you should be diligent or hire someone to be diligent for you. There are plenty of options available to you.

For many, a spreadsheet can be a simple way to track just about anything. There are many spreadsheets available (online, downloadable, apps, etc.) that you can customize to fit your needs. Once you learn some basics of spreadsheet operations, a spreadsheet can be a very valuable tool. Basic calculations and formulas are available online as well. If you are new to them, start with the basics and grow your spreadsheets over time. You will be amazed at the capabilities of a spreadsheet.

So you are not the accountant your business needs? There are many services available to handle this for you. The bottom line is that your business revenue and expenses need to be tracked in order for you to know where you stand. Are you profitable? Are there areas where you could save money? Are there areas where you need to reserve more funds? The only way to know is to track all revenue coming in and going out.

It is a new year, start it off right and get organized so that you can have a great 2020, and know just how great it was.