If you are a long-haul or short-haul trucker, you understand the importance of correctly reporting your fuel taxes. Before the implementation of IFTA, the international fuel tax agreement, reporting could be a burdensome task with significant amounts of paperwork. With the new agreement, this process has been simplified. You may have heard some drivers complain of the new technology and the complicated regulations associated with IFTA. However, TruckingOffice is here to offer trucking software solutions that will make it easier for you to be IFTA compliant.
First off, what is IFTA? IFTA stands for international fuel tax agreement. It is an agreement between the United States and Canada that aims to simplify carriers’ reporting of fuel use. As a driver, you know how much paperwork is necessary with even the delivery of one shipment. Particularly if you traveled in more than one state, you would have to report fuel taxes to multiple states. IFTA’s goal is to simplify that paperwork process. With IFTA, drivers report to only one location. Today, it is a legal requirement for most carriers in the US and Canada to have an IFTA license. To have an IFTA license, carriers must meet certain vehicle criteria. The application process is easy. And once you go through it, you will receive permits to put on your vehicle.
How IFTA Software Saves You Money
Back in the day, the fuel tax reporting system before implementing the new software was both time-consuming and costly. The main reason that IFTA trucking software saves money is that it digitally collects all your miles, fuel usage, idle time, rest time, and more. This accurate collection of data ensures that you are correctly reporting information in your quarterly IFTA reports. Because this data is accurate you are less likely to get fined for late or inaccurate reports. If you miss your reporting deadline, there is a chance you will not be able to drive until you submit the report, costing you weeks or months of income.
At TruckingOffice, your miles are calculated automatically with our software PC*Miler. All you have to do is enter your mileage information and report it back to each state that was along your route. We provide a comprehensive report to you for each quarter that notes your
- miles per state
- total fuel gallons per state.
This makes it quick and easy to fill out your IFTA reports. Shortening your time spent on filling out reports also saves you money because you can get back on the road sooner where you are earning money.
IFTA Reporting Software or Trucking Software?
You can buy a standalone IFTA reporting software. When you use them, you may have to enter your miles per state. You may have to find out the current tax rates per state that you drove in. Then you have to enter all that data into the software program. (Just a hint – beware of those so-called free IFTA software programs. Several of them let you enter all your data into their program without any fees or charges, but you can’t get a report until you pay. Free is a relative term for software.)
The opportunities to mess up your numbers increase with every number you enter into a software system. Nobody intends to put in the wrong number or to switch the numbers around. Or add an extra 0. There’s a lot of difference between 200 and 2000. Especially when you’re paying taxes on $200 worth of fuel versus $2000!
So, just the risk of messing up your numbers and ending up with fines or late fees because of a typo makes reducing the number of times you have to enter them. You’ll save money every time you file accurate numbers – not guesses.
You shouldn’t have to enter them if you’ve got dispatching software. The same numbers that are in your dispatch and routing are used to compute your IFTA fees – and your IRP. Think about how much time that saves (and that means money you’ve saved! ) Plus, your dispatch numbers are going to be far more accurate than the numbers you guess because you forgot to write down your mileage per state.
But that’s not all you should consider.
Maintenance by Miles
There are some parts of your rig that need to be checked based on the miles.
Sure, you can guess that it’s probably been… that many thousand miles since you last had some service done. Wouldn’t it be better to have a system that tracks your mileage and reminds you that it’s time for service?
The best trucking software also notes when your vehicle has potential maintenance issues. Altering you ahead of any issues allows you to fix whatever is necessary to get back on the road making money. Also, when you take care of the maintenance of your rig, you save money. You’ll avoid facing costly maintenance that could take significant amounts of time. Our software also notes when it is time for you to take a break in order to follow Hours of Service (HOS) policies. If you drive past your HOS, you could be fined. Our software helps you to track those hours to ensure you avoid these potential fines.
Why Choose TruckingOffice?
As a driver, your job can be stressful. At times, you may feel overwhelmed with all the reporting, the new IFTA regulations, various deadlines, and more. You just want to be on the road making money.
With our TruckingOffice trucking software package, your fuel use, invoices, mileage, truck maintenance, and IFTA reporting is organized into one secure place. We strive to make the paperwork portion of your job as simple as possible. With this information, you will always know where you stand and how to make improvements that will save you money and time. Learn more about our TMS package and start your free trial today!