for new van owner want to be

underdog777 · Feb 5, 2011

ok im new at this to.So i will give you a spread sheet at my expenses and net profit .Based on speculation that my business stays the same as it has been running.Based on a 66700 mile year at .93 cpm,total gross 62031.Ok here it goes and this is with 6 weeks a year off or 3.5 days a month.I will start with highest to the lowest in order of expenses 62031-14405 for fuel =47626 -5200 for fees,qc,workers comp,misc items=42426-4500 for van payments=37926-2344 taxes=35582-1600 maint=33982-1300 truck ins= total net profit 32682 a year or 2723 a month or 680 a week. not that bad and not that great either.the toughest part of the job for me is being away from home and the wife and baby there by them selfs.for some this may not be enough money

OntarioVanMan · Feb 6, 2011

Good average year for a CV...Now if you could increase your .93 cpm up closer to .98-1.00 you could add a couple days a month to your home time if ya wanted.....you also had a good year maintenance wise....I would not count on that every year...have you been able to squirrel any cash away for that big repair or have other means to handle that....

Congrats on a good 1st year....

BTW..if you would subtract your off time of 6 weeks..actual time worked...your numbers would be at $778 a week....looks even better...

denny2010 · Feb 6, 2011

may i ask what kind of van do you have ? thanks

underdog777 · Feb 6, 2011

i drive a e350 ford super duty ext.And yes i wish i could avg more a mile.I called load 1, they are not taking anymore cargo vans at the moment.Also i added on an extended warranty when i financed the van to cover major expenses.It has a 100 deductable so i havent had to use it yet.Its just incase of major breakdown

OntarioVanMan · Feb 6, 2011

underdog777 said:
i drive a e350 ford super duty ext.And yes i wish i could avg more a mile.I called load 1, they are not taking anymore cargo vans at the moment.Also i added on an extended warranty when i financed the van to cover major expenses.It has a 100 deductable so i havent had to use it yet.Its just incase of major breakdown

Experience alone will net you a few more loads in itself..and the skill of knowing when you have the upper hand to negotiate a better rate on some loads...which will increase your average rate per mile....

BillChaffey · Feb 6, 2011

$2,344 in taxes. I think you may want to look for another Accountant.

chefdennis · Feb 6, 2011

Bill wrote:

$2,344 in taxes. I think you may want to look for another Accountant

You know i was thinkin the same thing...I cant tell you when I "legally" had to pay a dime in taxes...i haven't made enough money in this business to pay income tax...

underdog777 · Feb 6, 2011

thats what i sit aside for them.If i dont use it then that is a xtra bonus at the end of the year

nightcreacher · Feb 6, 2011

Any money you net is your income.You have personal deductions you can subtract from that.If your not paying taxes,your truck is operating at practically a loss every year.When your net profit is over 30000 as his was,how do you plan on hideing that 30000 bucks.After rereading your expenses,you cant write off the van payment,you have to take off depreciation and the interest on the note,which can be higher than your van payment.I write off everything that is done while I'm away from home,having to do with hte truck,pens,paper,parking,you name it,and in my operation,I have a net of over $70000 and believe me,its hard to hide that much money.My taxes are usually based on 45000 bucks,thanks to my accountant

paullud · Feb 7, 2011

Who do you drive for?

pjjjjj · Feb 7, 2011

underdog777 said:
ok im new at this to.So i will give you a spread sheet at my expenses and net profit .Based on speculation that my business stays the same as it has been running.Based on a 66700 mile year at .93 cpm,total gross 62031.Ok here it goes and this is with 6 weeks a year off or 3.5 days a month.I will start with highest to the lowest in order of expenses 62031-14405 for fuel =47626 -5200 for fees,qc,workers comp,misc items=42426-4500 for van payments=37926-2344 taxes=35582-1600 maint=33982-1300 truck ins= total net profit 32682 a year or 2723 a month or 680 a week. not that bad and not that great either.the toughest part of the job for me is being away from home and the wife and baby there by them selfs.for some this may not be enough money

'I'm new at this'

and

'based on speculation that my biz stays the same as it has been running'

- I am just wondering how long you have been at it, and how long is the period of time on which you are basing your annual numbers?

- Is there a per-gallon avg price you are using to calculate your future fuel costs, or are you using your own numbers based on whatever time period you're using for your calculations, and is that price reasonable to expect as an average for the future?

- Do you have any driver licensing, truck licensing, permits, tolls, etc that you have to pay for?

- Do you get your communications expenses paid for, ie internet, cellphone?

- IMHO I don't think you should be showing tax amounts against your revenue; it almost seems like you are trying to establish a figure for 'net profit' to be compared to an employee's 'net pay after taxes' and of course, the 2 can't be compared since it's way more complicated than that.

In this snapshot you have provided, you have left lots of blanks, but even if your numbers are all there are to consider, it seems clear (at least to me) that there isn't enough there to even think about adding a couple more vans with drivers. (Sorry to bring this up here, but I noticed in another thread that you were thinking of doing this).

OntarioVanMan · Feb 7, 2011

pjjjjj said:
and

- I am just wondering how long you have been at it, and how long is the period of time on which you are basing your annual numbers?

- Is there a per-gallon avg price you are using to calculate your future fuel costs, or are you using your own numbers based on whatever time period you're using for your calculations, and is that price reasonable to expect as an average for the future?

- Do you have any driver licensing, truck licensing, permits, tolls, etc that you have to pay for?

- Do you get your communications expenses paid for, ie internet, cellphone?

- IMHO I don't think you should be showing tax amounts against your revenue; it almost seems like you are trying to establish a figure for 'net profit' to be compared to an employee's 'net pay after taxes' and of course, the 2 can't be compared since it's way more complicated than that.

In this snapshot you have provided, you have left lots of blanks, but even if your numbers are all there are to consider, it seems clear (at least to me) that there isn't enough there to even think about adding a couple more vans with drivers. (Sorry to bring this up here, but I noticed in another thread that you were thinking of doing this).

In the beginning I too had a dream, thought of a fleet...then as time went on Reality set in, The numbers became more evident just how hard it would be with CV's....

Moot · Feb 7, 2011

underdog777 said:
Based on a 66700 mile year at .93 cpm,total gross 62031.

I see no mention of deadhead miles. Can we assume the 66,700 miles are loaded miles only?

underdog777 said:
thats what i sit aside for them.If i dont use it then that is a xtra bonus at the end of the year

Does your wife have a job? Is the $2344 that is being set aside for taxes being paid to the IRS in the form of estimated quarterly payments or being stuffed under the mattress?

OntarioVanMan · Feb 7, 2011

The guys happy here...you's going to dissect him till he is demoralized?..*l*..gee whiz....

Moot · Feb 7, 2011

If a small dose of reality demoralizes him he ain't gonna last long.
I happen to believe deadhead miles should be taken into account to get a more accurate handle on profit. Also if he thinks he will be paying a couple thousand dollars to the IRS this April, he should be making estimated quarterly payments.

OntarioVanMan · Feb 7, 2011

Moot said:
If a small dose of reality demoralizes him he ain't gonna last long.
I happen to believe deadhead miles should be taken into account to get a more accurate handle on profit. Also if he thinks he will be paying a couple thousand dollars to the IRS this April, he should be making estimated quarterly payments.

true....

I only pay SS tax...don't do the quarterly thing...never made a profit.....poor van driver...*lol*

Moot · Feb 7, 2011

Everyone's tax situation is different. My wife has a job and we file a joint tax return. I make both federal and state estimated quarterly payments. I try and fine tune these each year and often skip the 3rd and/or 4th quarter payment(s). Our goal is always to pay ZERO or get ZERO back come April. This was easier to accomplish when I had a real job with a steady income and less deductions. We would adjust our number of dependents accordingly. We would rather pay a $1000 in April than get a refund. But that's just me! Same with the run less miles for more pay. Silly me!

OntarioVanMan · Feb 7, 2011

Moot said:
Everyone's tax situation is different. My wife has a job and we file a joint tax return. I make both federal and state estimated quarterly payments. I try and fine tune these each year and often skip the 3rd and/or 4th quarter payment(s). Our goal is always to pay ZERO or get ZERO back come April. This was easier to accomplish when I had a real job with a steady income and less deductions. We would adjust our number of dependents accordingly. We would rather pay a $1000 in April than get a refund. But that's just me! Same with the run less miles for more pay. Silly me!

we are on the same page...the money is best in MY bank then the governments...I'll not give them a cent before it is due.....

pjjjjj · Feb 7, 2011

Moot said:
I see no mention of deadhead miles. Can we assume the 66,700 miles are loaded miles only?

The way I looked at it was that the miles given are paid miles only, and the fuel is what was paid for all fuel (including DH and personal) for a year. (or what his numbers would expand be if expanded over a year)

Since we don't know what time period or length of time period he's basing his numbers on, it leaves lots of blanks.... like how much DH he averaged, the MPG his van gets, the rate he is averaging out for fuel price per gallon, etc..... all of which is why I am asking how long of a timeframe he is using to base his yearly figures on. That piece of information is important since anyone can have a good few months or a bad few months, but a truer picture tends to emerge, the longer one is at it.

BillChaffey · Feb 7, 2011

He starts out with a 66,700 mile YEAR. With 6 weeks off. Whether or not he uses DH is a individual choice. How many 9-5 r's deduct the price of fuel to get to work weekly or add the hours of a commute into their take home pay?. It's certainly wise to use all miles since your paying for them. But I have no idea if the DH miles are deductible for the IRS.