(720) 333-7274 • Mon–Thu 8–4, Fri 8–12 MT · Castle Rock, CO
TBA & Associates Accounting & Bookkeeping
Towing Services specialty

Towing service accounting.

Insurance company A/R, motor club contracts, fuel cost, and the depreciation math for shops running equipment investments north of $500K.

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Towing is one of the most equipment-intensive small businesses in the country. A flatbed wrecker is $80K. A heavy-duty rotator is $300K+. Insurance company billings sit in A/R for 30–90 days. Motor club contracts (AAA, Allstate Roadside) pay set rates that may not cover actual cost. The accounting framework has to handle all of it.

We work with light-duty residential tow shops, heavy-duty wrecker operators, and police-rotation contractors.

What we handle

  • Insurance A/R aging by carrier — track which insurers slow-pay.
  • Motor club contract revenue with rate analysis vs actual cost per call.
  • Equipment depreciation — wrecker financing, Section 179, bonus depreciation.
  • Fuel cost tracking with IFTA filings if multi-state.
  • Driver payroll with proper class codes for workers comp audits.
Field note: motor club rate analysis

A 6-truck tow operator had AAA contracts at $42/call. Actual cost per call (fuel, labor with burden, equipment depreciation share) was $51. Every AAA call lost $9. We flagged the gap; renewal renegotiated to $58.

If / Then

If you run one truck, monthly bookkeeping with simple insurance A/R tracking is enough.
If you run heavy-duty equipment, depreciation timing materially affects tax position.
If you have motor-club contracts, rate-vs-cost analysis happens at every renewal.

The Bottom Line

Equipment math right, A/R aged real, rate negotiations data-driven.

From $600/month for tow companies.

Frequently asked questions

Software?

TowBook, Beacon, Dispatch Anywhere. Sync to QuickBooks.

Section 179 on a heavy-duty wrecker?

Yes — qualifying equipment expensed in year 1 within annual cap.

Insurance A/R best practice?

Aged report by carrier. Anything past 60 days gets a follow-up. Carriers with consistent slow pay get flagged for management.

Workers comp class code?

Class 7228 or 7229 typical for towing — verify with insurer.

Reviewed by

Kali Gilliland · Founder & Lead Accountant

Kali Gilliland is the founder of TBA & Associates and has spent more than a decade serving small businesses across the Denver metro and Colorado Springs corridor. She handles everything from monthly bookkeeping to multi-state tax planning, with a long-term client roster that goes back 10+ years.

Also serving

Industries we work with across the Denver metro

Plumbers Electricians HVAC Contractors Roofers General Contractors Painters Landscapers Concrete Contractors Flooring Contractors Window & Door Installers

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Get a quote in under 24 hours. No long contracts, no jargon — just clean books and honest tax planning from a Denver-area firm trusted by small businesses for more than a decade.

Get a Free Quote Call (720) 333-7274