Passenger transportation

Books and taxes for school bus contractors.

District route contracts, field trip billing, summer downtime, and a fleet that depreciates like a small business's biggest asset. Gus sorts all of it, an accountant checks every transaction, and you get one number a month.

Book a call What we handle
  • From $197 a month
  • An accountant on every transaction
  • Cancel whenever
SeptemberExample month
$33,600
what you made

September came in at $33,600. Route pay resumed for the school year, and I flagged two summer field trips still owed by a district.

  • Lincoln County SchoolsDistrict route contracts
  • Meadowbrook field tripField trip billing
  • Diesel fuel, fleet cardFuel
  • Bus driver payrollDriver wages
  • Blue Bird parts orderBus maintenance
Money in$142,000
Money out$108,400
Set aside for taxes$8,600
An example month. Yours will have your numbers.

Why your books are different

A school bus contractor's books go wrong in the same few places.

A generalist sees payroll and fuel. Your business runs on district contracts that pay on a school calendar, drivers idle for summer, and a fleet worth more than most small businesses' entire assets. When the books do not know that, the return misses what it should catch.

  1. 1

    District contract pay does not line up with the school calendar

    A district route contract can pay in installments that do not match when routes actually ran, so a slow-looking month during a school break can really just be a payment timing gap, not a drop in business.

    What we doTracks what districts have paid against the routes actually run, so a payment gap does not read as a business problem.
  2. 2

    Summer idle time buries year-round costs

    Insurance, loan payments, and storage keep running through the summer even with no routes on the road, and without separating route income from fixed costs, summer looks like a loss instead of the normal off-season it is.

    What we doKeeps fixed fleet costs visible through the summer, so the slow months read as expected, not alarming.
  3. 3

    Field trips get lumped in with regular route pay

    A weekend field trip charter and a weekday route contract both come from the same school district, and if they land in one category, you cannot tell which part of the business is actually growing.

    What we doKeeps field trip and charter billing in its own line, separate from standing route contracts.
  4. 4

    A replacement bus looks like one big repair bill

    A new or used school bus can cost well into six figures, and if it lands in the same category as brake jobs and tune-ups, the month looks alarming and the return misses a depreciation deduction it should get.

    What we doLogs bus purchases as equipment the month they show up and flags them for the accountant's call on how they get written off.
  5. 5

    A substitute driver looks like a contractor

    A retired driver called in to cover a route during flu season and paid a flat day rate is usually still an employee if they are driving your bus on your assigned route, whatever the pay arrangement is called.

    What we doFlags substitute and fill-in drivers who work like employees and brings in the accountant before it becomes a habit.

Your categories

The categories Gus keeps for a school bus contractor.

Set up once for how you get paid and what you spend. You never pick a category. He does, and an accountant checks it.

Money in

  • District route contractsStanding agreements to run daily routes for a school district.
  • Field trip billingCharters and one-off trips billed apart from regular routes.
  • Special needs transport contractsRoutes with specialized vehicles or aides billed at a separate rate.
  • State reimbursementsWhere a state reimburses part of transportation costs directly.

Money out

  • Driver wagesPayroll for bus drivers, kept apart from any substitute driver pay.
  • Bus maintenanceTires, brakes, engine work, and scheduled service for the fleet.
  • Diesel and fuelFuel for a fleet running daily routes during the school year.
  • Bus loans and leasesMonthly payments on the fleet.
  • Commercial fleet insuranceCoverage that runs year-round even during summer downtime.
  • Bus storage and lot feesOff-season storage and yard costs for an idle fleet.
  • Routing softwareTools like Edulog or Zonar used to plan routes and track buses.
  • Licensing and DOT complianceInspections, permits, and driver qualification files.

What we watch for you

  • Contract receivables

    What districts owe against routes already run, so a payment gap does not look like a slowdown.

  • Cost per route

    Fuel, driver pay, and maintenance against what each route contract pays.

  • Off-season fixed costs

    Insurance, loans, and storage that keep running through summer with no route income.

  • The set-aside

    Tracked every month across the school year, so tax season brings no surprises.

Ask Gus

Things school bus contractors ask Gus.

Text him like you would text anybody. He answers in plain English, and when a question is above his pay grade, an accountant looks and gets back to you.

Our district payment came in low this month even though we ran every route. What happened?

I checked what was billed against what was paid. The district is a few weeks behind, not short on the amount. I am tracking the gap so it does not get lost.

Summer is here and there is barely any income, but the bills keep coming. Is that normal?

Yes, for this business. Insurance and loan payments run year-round even with buses parked. I keep those visible so summer reads as expected, not a crisis.

We bought a used bus for $85,000 this fall. How does that get written off?

I logged it as equipment, not a repair. Bonus depreciation is back to 100 percent for buses bought after January 19, 2025, but the accountant makes the final call with your whole year in view.

The tax side

The tax side of a school bus contracting business.

Most of what goes wrong here is timing and labels. Contract payments that lag the school calendar, a bus filed like a repair, and a substitute driver paid like a contractor.

What your return has to get right

Your accountant signs it, so it gets done right the first time.

  • Buses and depreciationA school bus bought for the business can usually be depreciated, and bonus depreciation is back to 100 percent for buses acquired after January 19, 2025.
  • Driver classificationA driver, including a substitute or fill-in, who runs your assigned route on your bus is usually an employee, not a contractor.
  • Contractor 1099sA subcontracted driver or bus operator you send overflow routes to, if not on payroll and paid $2,000 or more in 2026, gets a 1099-NEC by January 31.
  • The pass-through deductionMost owner-operators can take up to 20 percent of business profit off their taxable income, which comes out right when contract timing and fleet costs are tracked correctly.

Deductions school bus contractors miss

Your bookkeeper knows what to look for in your statements. You never have to.

  • Diesel and fuel
  • Bus tires and brakes
  • Fleet insurance
  • Bus storage and lot fees
  • Routing software fees
  • Driver background checks
  • CDL training reimbursement
  • Vehicle inspections
  • Radios and GPS units
  • Bus detailing
  • Uniforms
  • Two-way radio equipment

General information about 2026 federal rules, not advice for your business. Your accountant looks at your actual numbers before anything gets filed.

All year, not just April

A school bus year, kept every month.

Routes run on the school calendar, but costs and taxes run all year, and your team stays on the books through both. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.

  1. January

    Route contracts renewed

    Last year's return gets started, the 1099 list for any substitute or subcontracted drivers is ready, and a monthly set-aside gets planned ahead of spring field trips.

  2. April

    Filed during the school year

    Your return is filed and signed while the school year is still in full swing, with no scramble because the set-aside has been running since January.

  3. July

    School year tally

    A look at how the school year's contracts performed, what you will owe, and how the fleet held up against fuel and maintenance costs.

  4. October

    Before winter routes

    Cold weather adds wear on buses and routes. Gus looks at any bus you might add and anything worth doing before December.

What you get

Starts at$197a month

What you pay depends on what your business needs, and it does not move after that, busy season or slow. No hourly bills, no surprise invoices, no setup fee.

Book a call
  • Monthly bookkeeping

    Every transaction sorted into categories set up for school bus contractors. You never categorize a thing.

  • An accountant checks every transaction

    Real review, every month, before your books close. Not a spot check.

  • Your business tax return, filed

    Prepared, reviewed, and signed by that same accountant every year.

  • The monthly number

    What you made, what you spent, what to set aside for taxes.

  • Your own bookkeeper

    A real person assigned to your business, in the app whenever you need them. No hold music.

  • On your books all year

    Every month, not just in April. Your team speaks up whenever something is worth your attention.

  • Cancel any time

    No contract. No cancellation call. Your books are yours.

Straight answers

Questions school bus contractors ask first.

How does Gus handle district payments that arrive late?

He tracks what has been billed against what has actually been paid, so a payment lag shows up as exactly that, not as a drop in business.

Summer has almost no income but the bills do not stop. How does Gus handle that?

He keeps fixed costs like insurance, loans, and storage visible year-round, so the off-season reads as the normal part of the business it is.

Do field trip charters get mixed in with our regular route pay?

No. Gus keeps field trip and charter billing separate from standing route contracts, so you can see how each part of the business is doing.

A retired driver fills in during flu season. Does she need to be on payroll?

Usually yes, if she drives your bus on your assigned route. Gus flags substitute drivers who look like employees and the accountant sorts out what it means.

Do I write off a replacement bus all at once?

Often you can. Buses bought for the business can usually be depreciated, and the accountant decides how much to take now based on your whole year.

Our books have not been touched since spring. Can Gus catch up?

Yes. Hand over the statements from however far back things have piled up, along with district contract details if you have them. Gus works through it and most owners know where they stand within a week.

Is a real accountant checking my books?

Yes. You get your own bookkeeper, Gus does the first pass on every transaction, and an accountant checks every one before your month closes. That same accountant prepares, signs, and files your business return. Goatkeeper is not a CPA firm, and we never pretend a person looked when they did not.

What does it cost, and can I cancel?

It starts at $197 a month, depending on what your business needs. No setup fee, no hourly bills, no contract. Cancel any time from the app, and your books go with you.

More in passenger transportation

We keep books for the business next door too.

What makes a bookkeeper worth paying for Every business we keep books for

Book a call

Pick a time. That's the whole signup.

Fifteen minutes with a real person on our team. They look at where your books are, tell you straight what it takes to get caught up, and get you set up on the spot if it fits.

  • $197 a month to start
  • An accountant on every transaction
  • Cancel whenever