Accounting software for a transport business: why general accounting falls short.
General accounting software knows invoices and ledgers. A transport business also runs on LRs, to-pay freight, driver advances, FASTag, tyres and lane margins.
Freight terms. Paid, to-pay and to-be-billed LRs land in different ledgers at different times.
Driver hisab. Advances, fuel, FASTag, tolls and expenses are settled per trip, often in cash.
Vehicle cost centres. Tyres, repairs, EMIs and insurance belong to a truck, not just to a ledger.
Lane margin. Profit only makes sense per lane after the empty return, which general software cannot see.
Compliance. GST on freight and TDS on payments to transporters and brokers need clean data from the LR onwards.
GST and TDS points a transport business must get right
GST on freight (GTA). A goods transport agency can charge GST under forward charge, or the recipient pays it under reverse charge (RCM), depending on the option chosen and who the recipient is. Your software has to know, per customer, which applies, and print it on the freight bill. Rates and options have changed over time; take them from the current CBIC notifications.
TDS on freight (Section 194C). Customers deduct TDS on freight they pay you, and you deduct it on payments to brokers and hired-vehicle owners. A transporter who owns ten or fewer goods carriages and gives a PAN declaration can be paid without deduction under Section 194C(6). Your books must track both sides and match them with Form 26AS.
Hired vehicles. Payments to market vehicles, with advances, balance and deductions, need their own ledger, separate from your own fleet’s costs.
General accounting software vs transport accounting
Need
General accounting software
Transport accounting inside a TMS
Freight bill
Typed from the LR register
Drafted from delivered LRs
To-pay freight
Manual journal at delivery
Posted when the POD is accepted
Driver hisab
Separate Excel
Built from the trip
Vehicle P&L
Cost centres set up by hand
Every expense tagged to the truck
Lane margin
Not available
Weekly, after the empty return
GST and TDS
Yes
Yes, with freight terms per party
Documents that post themselves
The fastest transport offices do not "do accounts" at month-end. Every financial document posts its own balanced journal entry when it is saved: the freight bill, the receipt, the driver advance, the fuel slip. Accounts then become a review job, not a typing job.
Checklist for transport accounting software
Freight bills drafted from delivered LRs, with GST.
To-pay, paid and to-be-billed handled correctly in the ledger.
Driver ledger built from the trip: advances, fuel, FASTag, tolls, expenses.
Vehicle cost centres for every truck.
Trial balance, P&L, balance sheet, day book, cash and bank book.
GST and TDS summaries and bank reconciliation.
Period locks and a financial-year close that auditors accept.
Edits that reverse and re-post instead of overwriting.
Lane, customer and vehicle profitability.
Tally export if your CA needs it.
How SCM for Transporter does it
SCM for Transporter keeps double-entry books inside the transport system: each financial document posts one balanced entry; edits and cancellations reverse and re-post; trial balance, P&L, balance sheet, ledgers, GST and TDS summaries, bank reconciliation and period locks are built in, with Tally export. Margin per lane is reported after the empty return, every Monday. See also bilty software and what transport software costs.
Questions
Can transport software replace Tally?
It can, if it keeps proper double-entry books with GST, TDS, bank reconciliation and period locks. Many transporters still export to Tally for their CA during the first year.
Is TDS deducted on freight paid to transporters?
Generally yes, under Section 194C. A transporter owning ten or fewer goods carriages who furnishes a PAN declaration can be paid without deduction under Section 194C(6). Check the current rules with your CA.
How is driver hisab accounted for?
Each trip’s advances, fuel, FASTag, tolls and expenses post to the driver’s ledger, and the settlement at the end of the trip clears it.
Why do I need lane-wise profit?
Revenue per trip hides the empty return, tolls and waiting time. Lane margin after the return trip shows which customers and routes actually make money.
