IFTA is an agreement between the United States of America and Canada. According to IFTA rules laid every licensee operating within the jurisdiction of IFTA member states, have to file tax returns. This agreement was basically enforced to induce a high level of efficiency in the highway and transportation system. Also, this agreement was introduced to formulate a systematic fuel tax collection and distribution mechanism, within the framework of various IFTA member states. It is the sole responsibility of every licensee to timely file the tax returns and pays all the due taxes. Therefore, all the licensees should maintain proper records and tax calculations should be done correctly to avoid penalties. Calculating IFTA through the old way is a time consuming and difficult task. Therefore, to save your money and time you need IFTA fuel tax calculator to figure fuel taxes effectively.
If you calculate IFTA through old way you need to keep track of vehicle mileage record, fuel records, distance records, and tax-paid retail fuel purchase receipts, along with all relevant data such as gap miles and fuel receipts. Doing all this work manually is not an easy task and errors can result in hefty fines and penalties. Therefore, many companies have developed software that will make the process of calculating IFTA easy and straightforward. These programs are designed to help the auditors to produce accurate mileage as well as fuel records by calculating the exact fuel tax for your trucking company. Not only it eliminates manual data entry and unnecessary processes, but also offers trucking companies owners more flexibility and efficiency when tracking and reporting fleet movement and provides more accurate trip records.
Carriers should also look for a tool that combines effortlessly with their existing fleet tracking solution. With so many software programs to manage, allowing a single point of entry eliminates some administrative duties and provides a more seamless workflow between drivers and dispatchers. It also removes the need to register vehicles in separate systems manually. There are many companies that will offer you IFTA fuel tax calculator so, make sure that you select the best software for your business. Research well before you finalize any software. IFTA fuel tax calculator is the fastest, easiest way to prepare your own fuel tax return. When embracing an automatic software for fuel tax reporting, make certain to mention the benefits it will bring to drivers, so it will cut the time that they devote to paperwork, and also decreases the burden of losing.
Whether you want to calculate IFTA fuel tax for a single truck or for an entire fleet IFTA fuel tax reporting calculator will help you track and manage fuel tax in a better and effective way. Every quarter cross-country truck drivers are required to fill out and submit a report that details the number of miles driven in each state along with the amount of fuel purchased in each state. Using a set of complicated mathematical equations they are then required to determine how much fuel tax was overpaid or underpaid in which they have to make a tax payment. All the above calculation are made more accessible and more straightforward with the help of this powerful tool.