A Quick Guide on IFTA and Non-IFTA Miles
The mileages are the backbone of the IFTA report. Getting this wrong during the calculation is an invitation to IFTA audit and hefty penalties. Whether if you have a good understanding or not let us understand the IFTA mileages in detail in this article. By the end of the article, you will have a good understanding of IFTA and non-IFTA miles for your heavy highway use tax.
The first question is what are Total IFTA miles? Total miles means the miles your fleet ran in the jurisdiction areas in the quarter. It covers the IFTA miles; it does not include non-IFTA miles and non-taxable miles. What are IFTA miles? The international fuel tax agreement miles or IFTA miles are the distance your fleet ran in all the jurisdiction areas. It also includes distances to mechanic shops, conveyance and deadhead miles. The personal conveyance and just deadhead miles have to be included in the report. Drivers can explicitly mention the cause in the IFTA audit.
Reporting all the miles including the above is very beneficial for the trucking owners. This will help benefits in getting higher MPG. Fuel consumes with higher MPG means lower taxable fuel per jurisdiction. This greatly helps to lower the IFTA tax balance. The non-IFTA miles are the miles covered by your vehicle in the areas of non-jurisdiction.
The non-jurisdiction areas are Alaska, Hawaii, District of Columbia, Yukon Territory, Northwest Territory, Nunavut, and Mexico. The distances covered in the areas are called the non-IFTA state miles. Every state has some unique exemptions. Nontaxable miles are not subjected to heavy highway use tax. The exemptions are also of different types. They are fuel exemptions, distance exemptions and vehicle exemptions. These exemptions vary from year to year.
Some of the examples of exemptions areas are Forest Roads in California, Agricultural Roads in Utah, Trip Permits in New York, Pike Miles or Toll Roads in Massachusetts. Some jurisdictions exemptions in the form of fuel permitted. This means if you buy a fuel permit the miles drove will not be under the tax. It is very important to know about these exemptions and when to utilize. Not only it will help you in saving taxes but also help in filing the IFTA report accurately. To know what is IRP miles. It is the IRP mileage which is equal to your IFTA mileage. Accurate mileage and miles covered are important in IFTA reporting.
An IFTA audit happens randomly and the miles covered are checked very closely. You will not want to get hefty fines because of the sheer ignorance of the miles covered in heavy highway use tax. You can take charge with an awesome range of IFTA tax calculators that is available to ease your responsibility. Total IFTA miles do not cover non-IFTA miles. IFTA miles are any distance covered in the jurisdiction areas and non-IFTA is the distance covered in the non-jurisdiction. Total Taxable miles do not have applicable exemption mile. The IFTA report contains only the IFTA miles.
How To Effectively Manage Trucking Accounting?
Either it is a small trucking company or the large one, accounting and bookkeeping always bother them the most. They always search for the right solutions that can effectively handle all the accounting tasks. Trucking Accounting Software is the best option for them to make the accounting process easier and faster.
Trucking software is basically designed to help trucking companies in several business activities. Though there a lot of trucking accounting software plans and packages in the marketplace. Some of them are packed with the entire trucking management software programs. Some other software has been designed to perform a specific set of tasks. It is totally up to you and the requirement of your business to choose the right trucking software for your company.
Trucking accounting software should have all the features that account software possesses. This includes accounts payable, accounts receivable, billing, invoicing, and profit and loss statements. Not all software has the same features and functions. The first and foremost thing you have to do as an owner of a trucking company is to analyse your business requirements. Therefore you can buy the right trucking software.
The advanced trucking accounting software is all-inclusive, cloud-based, and fully integrated with all the latest tools. Accounting is just one specific task this software performs in addition to other trucking tasks. It also handles trucking logistics such as dispatch and fleet management.
The other accounting options such as payroll, accounts payable, accounts receivable, and a general ledger is also included in the software. The trucking software can be easily customized and enhanced to meet the specific demands of a transportation company. It can interface with an extensive array of systems. Nowadays, most of the software has real-time monitoring features.
This is very helpful in making the right strategies to achieve the desired business goals. Trucking accounting software reduces manual interventions. So, fewer accounting professionals is required to complete the work. Feature-rich software can beautifully serve every scale of the trucking business. The software also helps you to keep a tab on the expenses.
As an owner-operator, you can easily track the daily income with the software. In addition to the accounting tasks, trucking accounting software also helps in IFTA related applications. Using the software it is easier for you to bill clients. You will be able to get your compensation as soon as possible. Dispatching screens available with most of the trucking software provides you with lots of information at a glance. The master dashboard gives you the flexibility to navigate to the function whenever you need it.
The need for every trucking company is different, and so is the choice of truck accounting software. The company with a large number of fleet wants to have advanced software. Generally, the company with a small number of fleet looks for simpler ones. Accounting tasks for every business is also not the same. Therefore, it is better to find the software that is a perfect fit in their budget and requirements. Accounting tasks are lengthy and complicated. Having the best trucking accounting software is a boon the companies. Not only it streamlines the entire accounting process but it accurately performs it.
Top Tips for Choosing an IFTA Mileage Calculator
Every trucking company wants to have all the latest tools and technology to upgrade their business. In this era of technological innovation, it is easy and simple to integrate modern software as a part of the system. IFTA stands for the International Fuel Tax Agreement. It is an agreement between the lower 48 states of the U.S and 10 Canadian Provinces. It simplifies the reporting of fuel use by the interstate commercial carriers. Every quarter the licensee has to submit a fuel tax return in their base jurisdictions.
The calculations involved in the IFTA are very complex and time-consuming. Companies have designed an IFTA mileage calculator to simplify the calculations. The calculator has countless benefits to run a trucking company without any hassle. PC Miler is also advantageous in route planning and mileage calculations. IFTA mileage calculator gives very fast and accurate outcomes. But the challenge lies in finding the best IFTA mileage calculator and PC Miler software for your company. Here are the top tips to follow before choosing IFTA mileage calculator.
Obviously, if you are looking for an IFTA mileage calculator, then you have some business goals to be fulfilled. In the marketplace, you will find many packages and plans for the software. But always try to know the details about the features and functions from the vendor. This will help you figure out the right software as per your business need. Also, try to choose the software according to the size of your business. While choosing any PC Miler software for your trucking business, you will have plenty of options. Price of software is not the same in the market.
It varies and depends on numerous factors. But always make wise decisions while purchasing any PC miler software or IFTA mileage calculator. Try to get the one that is budget-friendly as well as it can serve the purpose. Another important feature you should look into the IFTA mileage calculator is ease of use. Every trucker is not a tech-savvy. So, the interface of the software should be user-friendly and easily navigated. Any novice or newbie can easily operate the PC Miler software without any specific training. Therefore, the companies have designed software that doesn’t need lots of human effort.
We all are living the internet world and search for a product is no more tedious work. It is always better to do some research before buying an IFTA mileage calculator for your transportation business. Doing research will help you to know in details about the prices, features, plans, etc. that are available in the marketplace. Also, you will be able to save your hard-earned money in case you choose the wrong product.
Always look for a trusted IFTA mileage calculator that can easily and efficiently calculate overall costs, expenses, mileage, truck warnings, etc. Good IFTA mileage calculator maintains tabs on the fuel costs. It performs all the arithmetic so that you can save your time and income. Though there are many factors to look while choosing an IFTA mileage calculator. All the above-given tips will help you to choose the right PC miler software for your companies.