As a long-haul or short-haul trucker, you know that it is crucial to track and report on your fuel usage. Previously, drivers would have to get fuel permits from each state on their route. Afterward, they would have to calculate the fuel taxes associated with each state. The creation of the International Fuel Tax Agreement (IFTA) has simplified that process. With this agreement, drivers simply report their mileage to their base state, which then handles the distribution of taxes among the states along the driver’s route. Before purchasing an IFTA software, it is important to ask the right questions. By doing so, you will assure you are getting the software that works best for you.

What is IFTA software?

IFTA software is something that will automatically and virtually keep track of your miles driven, fuel use, and more. Many drivers use Electronic Logging Devices, or ELDs. ELDs have a variety of functions, including tracking driver location and synchronizing with your engine to document engine power. Using ELDs significantly simplifies the process of calculating your IFTA fuel taxes.

Who needs IFTA?

Federal law requires any carrier who is operating in the 48 contiguous states and 10 Canadian provinces to have an IFTA license. Your vehicle must meet certain qualifications such as having three or more axles or weighing over 26,000 pounds. Fuel taxes must be reported quarterly. Drivers will incur fines for late or incorrect reports. Once your application for IFTA is approved, you will receive your license and decals that allow you to travel between states and provinces.

Why buy IFTA software?

IFTA software conveniently tracks your fuel records and generates your quarterly fuel tax reports virtually. The software connects with your vehicle’s GPS data, allowing you to enter your odometer readings which the software uses to accurately calculate your IFTA fuel tax. Beyond fuel records, IFTA software can also track driver time, location, and vehicle maintenance issues. Being aware of the various aspects of your driving can help streamline the process and increase the safety of your trip.

How will this software impact profit?

Using IFTA software with ELDs will help increase profits. As all your records will be in one virtual place, you will not lose any important data about your mileage or fuel use, which could be costly to lose. You will be able to see the expenses and profits per mile which will allow you to adjust your driving patterns in order to maximize profit. Additionally, misreporting fuel usage can lead to fines and penalties – IFTA software helps you produce accurate reports and avoid those fines.  

How will the software help me calculate IFTA fuel tax reports?

As mentioned above, it is crucial that you are reporting your fuel usage accurately and on time. While you will be doing some of the calculations yourself, IFTA software will ensure that you are using the correct numbers. First, the software will digitally log all your miles driven in each state. Next, you will input your fuel purchases using your receipts from each fuel stop. You will then divide the miles driven by the total gallons to get the overall fuel mileage. Using IFTA software will minimize the chance for human error when filling out these important reports.

Why choose TruckingOffice?

There are many benefits of using IFTA software, especially in combination with an ELD. As IFTA licenses are required by federal law, it is important that you select software that will work for you. TruckingOffice can provide you with the resources you need to be successful in your industry. Check out our website for more information and for a free trial for some of our best products!

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