International fuel tax agreement or IFTA plays a vital role in the trade & transportation system between American states and Canadian provinces. The agreement was started with the aim of maintaining an efficient transportation system between both countries. As it is mandatory to provide the quarterly reporting to the base jurisdiction about fuel purchased, fuel consumed and a number of miles driven; accordingly, it is subject to decide whether or not a carrier should pay the taxes. The process is tackled through proper paperwork. To get a carrier registered itself under IFTA, a licence is required to obtain which is possible passing in the certain eligibility criteria.
IFTA is a crucial part of the trucking business. A number of trucks move in another country for the export and import of the goods and other trading purposes. Purchasing the fuel in that particular country is the obvious thing. A company with two or three trucks can easily maintain those records to prepare final IFTA reporting. But it becomes highly complex for the trucking businesses dealing in a large number of trucks, to manage those fuel purchased and consumed reports in order to appear for the final IFTA decision. IFTA has simplified the reporting and taxation, extensively. Although, it has been a headache for the big companies to provide quarterly IFTA reporting due to the complicated process of recording the data and making reports. To simplify it, you need a IFTA fuel tax and IFTA mileage calculator.
Fuel tax software has simplified the complexity of IFTA reporting. It has eliminated the need for third-party support and saved the money eventually. It is common to make mistakes while recording fuel details manually. These mistakes can lead to some serious blunder as well, and most back-breaking is legal penalties. The sanction can come in both monetary form or sentence. Fortunately, IFTA software has relieved the business owners by providing accurate records. Also, tedious and time-consuming data entering has been replaced by a few quick clicks which take place in seconds. It has done a good deed for the environment removing the paper used during data entry. Above all, the data remains highly secure in the software that put an end to concerns of the management. In a way, it is much safer to adopt software use in IFTA reporting than wasting time & money.
The trucking industry is the one most crucial part of the transportation. It contributes at large in the success of various businesses supporting them in the movements of goods and raw material. Trucking business was the one key cause IFTA took place. The regular border cross trade activities have required efficiency and an end to mismanagement. IFTA created a systematic way for carriers to trade trouble free across a country and pay taxation details after every four months only. Above all, IFTA software made thing easier with the timely, cost-effective and accurate reporting.