Understanding IFTA Fuel Tax Forms

Posted on February 28, 2012 by Allen Campbell

There are four parts to IFTA fuel tax forms: mileage, fuel, state and filing date. This does not sound complicated, at least, not until you realize the information needs to be filled out for each and every trip. Fortunately, our inexpensive TruckingOffice software makes it easy for trucking companies to stay in compliance even with IFTA fuel tax reporting requirements—we all know that noncompliance and inaccurate records can be extremely expensive!

Mileage

IFTA fuel tax forms require detailed information of each trip. This form requests reasonable things like start and ending dates, the origination, and destination. However, required information also includes routes of travel, beginning and ending odometer readings, total miles, and miles in each jurisdiction. Miles are broken down between taxable and nontaxable miles.

Fuel Receipts

Full information on fuel receipts must be kept for IFTA compliance. Date of purchase, type and amount of fuel, and sellers’ name are some of the requirements. Companies using tax-paid bulk storage must record each fuel withdrawal.

States and Fuel Tax Reporting Periods

Every state collects its fee. These complex quarterly calculations are due at the end of the month following the quarter. For the first quarter, the IFTA forms and payment must be mailed or paid at the tax office in each state by April 30. Fortunately, TruckingOffice software makes preparing these documents effortless, tracking income, charges, mileage and expenses of each load.

Penalties

Penalties can be very high for noncompliance with IFTA fuel tax reporting. For example, an auditor from the state of Florida can estimate miles driven and lower the miles per gallon to four. The state can disallow credit for taxes paid in other states if valid fuel receipts are not provided, and may even suspend or revoke IFTA privileges.

There is no reason to attempt this paperwork nightmare by hand accounting. TruckingOffice software is a simple one-step process that compiles IFTA fuel tax records automatically from information already in the system. This data meets or exceeds state requirements.

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Interesting Trucking Industry Statistics

Posted on February 23, 2012 by Allen Campbell

Keeping up-to-date on trucking industry statistics may not be one of the top priorities for owners of small trucking companies; you’re busy, busy, busy, and probably don’t have much time to look up trucking industry trends. However, some of these statistics may put you at ease, like knowing that the average company profit is only 4.8%; this allows you to compare your management style and performance against peers or competitors. And seeing the astonishing amount of freight transported annually renews your sense of pride in your chosen trade.

Profit

According to trucking industry statistics published by American Transportation Research Inc. (ATRI), most companies spend 95.2% of their revenue on operating expenses. Of course, this includes the driver, fuel, taxes and other costs of doing business. Our easy-to-use TruckingOffice software, designed especially for trucking operations, quickly provides this information with a few keystrokes.

Employment and Company Size

Based on the 2011 ATRI report, drivers comprise 61% of this workforce, and 82% of the companies are small, but this industry is growing despite the slow economy. The average driver makes $39,000 a year. One of the trucking industry trends shows a possible shortage of drivers in the future; this may be caused by increased government regulations and mandatory off time. Even though only 4% of truck accidents occur due to fatigue, truckers are facing more and more restrictions on the hours they can work. Although there were 500,000 trucking companies, 96% had 28 trucks or fewer, and 82% operate with less than 6 trucks. This is an industry of small, independent operators.

Volume of Freight

In the United States, trucking accounts for almost 70% of freight. This freight generates over $255 billion in revenue a year. Commercial carriers collect over $97 billion, while private fleets earn in excess of $121 billion. Airfreight generates $18 billion.

In the day-to-day struggle to get everything done, you might often overlook the big picture. According to trucking industry statistics, most freight companies are small operations making a small profit, but the trucking industry itself is a multibillion-dollar business.

Tips for Your FMCSA Compliance Review

Posted on February 21, 2012 by Allen Campbell

Although acing a FMCSA compliance review is not totally possible, these reviews are easier if trucking company owners and managers are fully prepared. The purpose of these reviews is to keep roadways safe by making sure drivers and trucks are competent. Therefore, the primary focus is on the drivers, trucks and company procedures. Five tips to making your FMCSA compliance review easier include keeping drivers’ information and qualifications, hours of service, controlled substances and alcohol testing, vehicle maintenance and accident reports current. Using our specially designed software for transportation companies makes sure you have the required information right at your fingertips.

Nine Steps of a FMCSA Compliance Review

When a compliance officer arrives, he or she conducts an opening interview with the owner. Necessary staff is interviewed, and accident reports for the last 12 months are reviewed. This inspection checks financial responsibility and vehicle maintenance. Information on drivers and hazard material procedures are assessed. After checking hours of service, the closing interview is conducted. Businesses are informed of the results within 60 days for a satisfactory rating and within 45 days for conditional or unsatisfactory ratings.

Relaxing Through This Process

If you have TruckingOffice, our software for transportation companies, you’re already prepared for your FMCSA compliance review. With this simple, easy process, information is only entered once. The program automatically transfers data to necessary records. When a driver is hired, all that information is input. The computer automatically updates all records; when a driver takes a load cross-country, the original order tracks the driver’s miles and hours of service. If the driver has the brakes fixed on the trunk in Tennessee, that information goes on the truck maintenance log when the repair charge is posted. Having all of this information centralized and easily accessible helps to put your compliance officer at ease, since it’s obvious that you manage your company well. TruckingOffice also tracks income and expenses, and can be used to calculate taxes.

The easiest way to survive your FMCSA compliance review is to have the required information available. Complete records on drivers, test results, maintenance and accident reports are vital. After all, safety is the number one concern of everyone involved!

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New Brokerage Software Now Available

Posted on February 17, 2012 by Allen Campbell

TruckingOffice is now offering brokerage software for only $45 per month for unlimited usage. This easy to use trucking brokerage software features load tracking, carrier maintenance, and customer management.

Load tracking
Customer history
Carrier history
Lane history
Quick searches and sorting
Expense management
Invoicing
Integrated miles
Dynamic reports

Perfect for a new broker getting started, an agent for a large trucking company, or any broker who is ready for an upgrade. Organize all of your contacts, shippers, carriers, load history, invoicing, and expense management in one place.

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