How can you save $12,000+ a year as an Independent Operator

I own two vehicles: a Toyota Tundra and a Jetta Diesel. One gets 15 MPG and the other gets 45 MPG. Mostly I drive the Tundra, all I ever see are other Toyota Tundras and when I speak to Tundra drivers, I always assume that everyone else is getting somewhere in the vicinity of 15 MPG (give or take a bit).

Tax preparers for Independent Operators only drive Tundras… not literally of course but for my illustration they do. Accounting firms, almost universally and exclusively use the TL2 simplified method to complete the tax returns for Independent Operators. Given the information that Operators can save $12,000+ in taxes, they usually openly scoff. They have no understanding of anything other than something around 15 MPG.

I’ve been serving the Independent Operator industry for almost 30 years. I first heard about Non-Taxable Benefits 25 years ago and started using it immediately. It wasn’t until 2006 that I began keeping records of tax savings per client. As of April 2024, our firm has collectively saved our operators $71 million in taxes. I have some clients who have saved more than a quarter million dollars. For this reason, I remain and enjoy serving the industry.

My BHAG (Big Hairy Audacious Goal) is to save the industry $1 Billion in taxes before I retire or expire. There is no way for me and my firm to accomplish that alone. This is why I have invested in the design of our own accounting platform, a platform focused on tax savings using the NTB system. Now, firms across Canada can collectively abandon the TL2 Simplified System for true tax savings.

I have written about NTB in Over the Road Magazine now for 14+ years. Even still, after all our success and savings, accounting firms still drive Tundras. I don’t really know what more I can do or say.

As an operator, you must understand that you are ‘low paying freight’, not a high priority in the accounting industry. You are a labour-intensive and low-margin client. Please don’t take that personally, it’s just the nature of your business and its relationship to tax preparers.

The NTB system ADDS more complexity and intensity to the tax preparation process. It’s certainly not something the average firm wishes to add. To save taxes legally you must present your income in a way that adheres to the rules and regulations assigned to the system YOU CHOOSE. The NTB system must be learned and complied with. The primary cost is the time it takes to arrange records appropriately for a sustainable defence in case of an audit. Saving taxes is not about WHO you use, it’s about WHAT you use.

We introduced our software at Truck World from April 18-20, 2024. If you are a tax preparer and wish to serve the Independent Operator industry, please contact our office, and learn more about our software and the benefits it will provide for you (the tax preparer) as well as your clients. It’s a fully encrypted, online system that reduces your workload and provides extreme value to your clients. Though 2024 would be considered a soft launch of the program, we felt that waiting for Truck World 2026 would have been way too long a delay.

What MYMC is trying to do is change an ENTIRE INDUSTRY to comply with a very specific regulatory system through a very specific software platform. I believe the long-term benefits are tremendous, to both the operators and their tax preparers. Brace yourself for change; this change is tax relief.

As I’ve written about for many years, there are also disadvantages to the system that must be navigated. They certainly are not insurmountable but are still very real. Check it out as we explain it using various platforms such as our PODCAST. It also produces a wide range of different topics for the industry to consider.

The NTB system is an industry disrupter, a game changer that produces extreme value for all who use it. If an operator wishes to survive the next decade they MUST learn and adhere to this system.

About the Author:
Robert D. Scheper is a leading Accountant and Consultant exclusively serving the Lease/Owner operator industry in Canada. His first book in the Making Your Miles Count series “taxes, taxes, taxes” was released in 2007. His second book “Choosing a Trucking company” is the most in-depth analysis of the independent operator industry today. He has a Master’s degree (MBA) in financial management and has been serving the industry since he and his wife came off the road in 1993. His dedication, commitment and strong opinions can be read and heard in many articles and seminars.

You can find him at www.makingyourmilescount.com or 1-877-987-9787.