Guide
Month end close for a small fleet: five checks, one number
The weekly review catches loads. The monthly close catches the business. It ends with one number you can price the next month from: cost per mile.
In short
- Close the month on a fixed day, such as the 5th. Everything from last month gets settled that day.
- Five checks: deposits, aging, unbilled charges, fuel and miles, cost per mile.
- The last step reuses the first four. It turns the month into a cost per mile you can compare with the last one.
- The routine is a suggestion. Adjust it to your books and your accountant.
Hook. In the example month, billed revenue was $148,500 but deposits were $131,200. The $17,300 difference is not lost, it is open invoices. But without a close, nobody would know how much.
Why a monthly close
Weekly reviews look at each load. A monthly close looks at the totals and checks that they agree with each other. Deposits should match paid invoices. Fuel should match miles. Open invoices should match the aging list.
The figure shows the five checks as a chain. Each one feeds the next, and the last gives the cost per mile. Use the cost per mile tool with the totals you collected.
Keep the close short. If it takes more than 2 hours, something upstream is untidy. Fix that, not the close.
The five checks
Match deposits
Every deposit to an invoice or a batch statement. Note the unmatched ones.
Refresh aging
Open invoices by age and by broker. See invoice aging.
Look for unbilled charges
Detention, lumper and TONU lines with proof but no invoice line.
Total fuel and miles
Per truck. This is also the first step of the IFTA close.
Update cost per mile
Total cost divided by all miles, empty ones included.
What each check needs and gives
| Check | Needs | Gives you |
|---|---|---|
| Match deposits | Bank statement, invoice list | Unmatched money list |
| Refresh aging | Open invoices with dates | Exposure by broker |
| Unbilled charges | Rate cons, timestamps | Money to invoice now |
| Fuel and miles | Card statement, ELD report | Miles per gallon, IFTA input |
| Cost per mile | All costs, all miles | The number to price from |
Worked example EXAMPLE VALUES
Example data. An invented 4 truck fleet for one month: 38,400 all miles, of which 5,900 empty. Open invoices at the start of the month: $52,000.
| Line | Amount |
|---|---|
| Fuel | $31,800 |
| Driver pay | $46,200 |
| Truck and trailer payments | $9,400 |
| Insurance | $6,100 |
| Maintenance and tires | $7,300 |
| Permits, tolls and software | $2,900 |
| Total cost | $103,700 |
| Cost per all mile | $2.70 |
| Billed revenue per all mile | $3.87 |
Open invoices at month end: $52,000 + $148,500 - $131,200 = $69,300. Empty share: 15.4% of all miles. Billed $3.87 per mile against a cost of $2.70 leaves $1.17 per mile before any unbilled charges are added. Next month, compare cost per mile with $2.70. A move of a few cents in either direction is the thing to explain. Write it in a notes column next to the number, with the reason: a lane change, a repair, a fuel move. In three months those notes are the history of your business.
Where it goes wrong
- Skipping it in a busy month. The busy month is the one with the most gaps.
- Leaving empty miles out. Cost per mile uses all miles, empty included.
- Closing without the bank statement. Deposits are the check on everything else.
- Treating the close as bookkeeping. Its job is to give you numbers to decide with.
The formulas
Use the same cost lines each month so the numbers compare.
Your books come first
This routine does not replace bookkeeping or tax work. Your accountant decides how costs are recorded. We use simple totals for pricing only.
We do not give legal, tax or financial advice. Your contracts come first.
Questions
How long should a close take?
About 1 to 2 hours for a small fleet once the habit is in place.
Should I wait for the last deposit?
No. Close on the fixed day and carry open items to next month.
What about a weekly review?
Keep it. The weekly review catches loads early. The close checks totals.
Do I need software?
No. A sheet works. The tools here read the totals you enter.
Related: weekly load review, true RPM, 13 week cash flow, accessorial recovery calendar, all guides.
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