The International Fuel Tax Agreement (IFTA) is an agreement between Canadian provinces and US states. Taxes are paid on the motor vehicles and commercial motor to register and have the tax assessment on all participating on the fair share. We generally don’t think about the IFTA. Most fleet owners tend to ignore the loads and miles before the holidays. However, why do we need to bring up the topic of IFTA? Well, by adhering to some strategy you can save a good amount of money later. The strategy is very simple, it is adopting a good IFTA software. Suppose you have loaded the vehicle and you are in a way to fill the fuel. So, where are you going to buy the fuel? You might need to keep IFTA in mind while making the decision. You need to analyze which state may owe you when you pay the fuel bills. The fuel prices may not be the lowest but it can save you some amount of IFTA taxes. You just need to know how much you owe and under which jurisdiction you will have to pay. However, if you have good IFTA software, that decision can be made by it. You don’t need to enter any data in that scenario. IFTA reporting with minimum input from the user is a sign of good IFTA software. Browse the below mentioned website, if you are seeking for more details concerning what is ifta.
You need software that computes the IFTA taxes without any user input. However, sometimes the question arises, whether such software exists? The answer is yes, good IFTA software does all the job for you. Be it tracking the mileages, invoices, routes and loads can compute the IFTA data. You don’t have to input the data. Instead, all the computations are done on demand. The IFTA reports will compute and show the fields like cost per mile, revenue per mile, cost per load, revenue per load, deadhead miles, fuel/mileage use, IRP and IFTA taxes due. These IFTA reports are not readily available anywhere. These are based on complex computations and an average accounting software can’t compute this. And if you think one can calculate the taxes with Google sheets, then it is not easy. There are regular updates to the IFTA rules across all jurisdictions. The IFTA software must be capable of updating the rules automatically. A good IFTA software will keep track of prices that are going ups and down. This tracking will save you with an error in reports.
IFTA reporting is an integral part of the trucking business. One has to properly fill the reports with correct data in order to prevent hefty fines during an audit. Thankfully, the good IFTA software will do every computation automatically. It will help you in accurate IFTA reporting. You don’t have to spend time entering data. The software does all that on your behalf. So, if you have not considered good IFTA software for your business. Then it is the correct time to do so. Adopt IFTA software with all the aforementioned characteristics and push your business to a good height.