CATEGORY 8 – OVERHEAD

Overhead Expenses – these are expenses that are not directly related to the operation of your Motor Vehicle.

Therefore your monthly cost per Motor Vehicle will be the total monthly overhead expense divided by the number of Motor Vehicles in your business.

We have created 5 subcategories to help you track and calculate your overhead costs.

Below are examples of Overhead Expenses

FIXED COST
·      Rent, Salary Office Payroll,

VARIABLE COST
· Hourly Office Payroll,  Postage, Bank Charges, Office Telephone, Office Cell Phones, Log Review Service, Office Supplies,  Load Boards, Professional Services, Mileage Software, etc.,

These cost are not directly related to any Motor Vehicle.  Therefore your monthly cost per truck will be the total monthly overhead expense divided by the number of Motor Vehicles.

Learn Cost Reduction Tips

Remember shopping around for the best combination of COST and BENEFIT is the best resource you have as a consumer for any expense.  Realize that the little things can add up!  YOU MUST CONTROL WHAT YOU CAN CONTROL!

ACCOUNTING/LEGAL  – YOU HAVE LITTLE CONTROL OVER THIS EXPENSE.  Use a competent person.

ADVERTISING –  Determine the benefits.  Eliminates all unnecessary expenditures

BANK CHARGES – Ask your bank to review your account to ensure that you are paying minimum fees based on your account usage.

COMPUTER EXPENSE – YOU HAVE LITTLE CONTROL OVER THIS EXPENSE

CONTRIBUTIONS – Eliminate all unnecessary expenditures

DEPRECIATION –  Cannot Be Changed. See Motor Vehicle Expense Reduction Tips

DONATIONS – Eliminate all unecessary expenditures

DUES & SUBSCRIPTIONS – Determine any benefit (reducting your cost).  Cancel if no benefit.

INSURANCE EXPENSE –  See Insurance Expense Reduction Tips

INTEREST EXPENSE –  Refinance outstanding loans.  See Motor Vehicle Expense Reduction Tips

SOFTWARE LICENSES – YOU HAVE LITTLE CONTROL OVER THIS EXPENSE

MEALS & ENTERTAINMENT – Eliminate all unecessary expenditures

MISCELLANEOUS – Eliminate all unecessary expenditures

OFFICE CLEANING – Reduce the number of times you clean your office each month or have employees perform some cleaning functions.

OFFICE EXPENSE – SHOP AROUND “YOU HAVE LITTLE CONTROL OVER THIS EXPENSE”

OFFICE SUPPLIES – YOU HAVE LITTLE CONTROL OVER THIS EXPENSE

POSTAGE / SHIPPING – Use your software’s mailing feature if available.  For example Quickbooks has a mailing service for $19.95 per month.  This works if you mail more than 50 envelopes per month.

OFFICE RENT – Ask your landloard if he/she would consider lowering your rent (that is, renegotiating your lease agreement).  Remember your seeking a expense reduction not a temporary lowering of your expense for a few months only to have it increase months later.

OFFICE PAYROLL – See Driver Payroll Expense Reduction Tips

SEMINARS / TRAINING – Eliminate all unecessary expenditures

CELL PHONE – Have your provider review prior usage to determine the best cost plan.

TELEPHONE – Have your provider review prior usage to determine the best cost plan.

TRAVEL / LODGING – Eliminate all unecessary expenditures

UTILITIES – YOU HAVE LITTLE CONTROL OVER THIS EXPENSE

[si-contact-form form=’1′]