Mostly, trucking businesses have to spend a number of hours and assign many people just to put their records together to file IFTA reports. With all the written and monotonous work that comes with completing the trucking tasks, the productivity of the truck can get reduced. In fact, IFTA tax reporting can be a little hectic, tiresome and can take your lots of time. As most of the businesses cannot afford to have that, so they need a solution out of that.
Here, we are going to discuss in detail how IFTA reporting works and how IFTA software can help to get rid of your problems.
How IFTA Tax Reporting Works?
The IFTA (International Fuel Tax Agreement) is the agreement made between some states in the USA and Canadian divisions to ease the way trucking industry report their fuel usage. This agreement actually influence the trucks that travels to more than one jurisdiction. Check this article on Manual vs Software Approach for IFTA Tax Calculation
It becomes very easy for the trucking industry to manage everything with the use of International Fuel Tax Agreement. With IFTA software, trucks would not have to be bothered with having to go to the point of entry of each IFTA member jurisdiction that they travel to. They only have to attain their license from one IFTA member jurisdiction and be able to travel across other states.
A Few Tips to Avoid IFTA Audits
As most of the accounts that are audited are chosen casually, and some of them are not quite selected that way. Here are some tips that you can help you to lower your chances of getting selected for an audit: Review Your excursion sheets to make sure that it shows continuity. If your document shows your truck suddenly reaching Ohio if your truck came from Wisconsin (without revealing any records of those conditions in between), it might raise red flags for those reviewing your records. Do not Forget to record your non-taxable or personal mileage.
You are going to end up having mileage interruptions if you’ll neglect to incorporate those on your records. Do not Be late in submitting your IFTA reports. Delaying IFTA filing raises the chances of your company getting audited. Additionally, it also contributes to hefty fines. Don’t Ever miss recording your mileage and fuel usage, so that you can be 100% True when calculating your quarterly MPGs.
How to Generate IFTA Reports?
No one can deny the fact that calculating IFTA reports is a hectic task for most of the trucking companies. It actually takes your efforts, time, resources, and is just a managerial burden that each and every fleet could do without.
Well, the good news is that this time-consuming and frustrating process can be made easy and effortless with a powerful fleet management system or IFTA software. For example, companies that are using the IFTA software can calculate their IFTA reports in just a few minutes without any effort.
It only takes a few clicks to rapidly generate IFTA reports. More than 90% of trucking companies make use of automatic IFTA reports features for increasing efficiency, reducing management burden and saving lots of money.