What Is IFTA And Why Should You Track Your Fuel Usage?

Entrepreneurs often face several intricacies to manage before their business is successful.

One responsibility that some owners may need to become more familiar with is tracking the fuel usage of their fleet of cars or other vehicles they own if they provide them to employees.

See how IFTA reporting software can help make your life easier in this article!

What is IFTA?

The International Fuel Tax Agreement between US and Canadian states allows trucking businesses to report fuel usage taxes. If a trucking business operates in multiple states, they only need to file one fuel tax report with its base state, and that report shares with all other IFTA member states.

It helps to simplify the process of filing fuel taxes and also helps to ensure that businesses are accurately reporting their fuel usage.

How to use IFTA reporting?

If you're a truck driver who frequently crosses state lines, then you're probably familiar with IFTA reporting. IFTA allows commercial vehicles to cross state lines without paying multiple fuel taxes.

To report your mileage for IFTA purposes, you'll need to keep track of your total miles driven in each state/province and the number of gallons of fuel used. You can easily use the IFTA reporting mileage calculator to track your mileage and fuel usage.

Enter your starting and ending odometer readings and fuel use, and the IFTA Calculator software will determine your total miles driven and calculate your fuel taxes owed.

Why should you track your fuel usage?

The following are the reasons to track your fuel usage.

• It may reduce fuel costs. Knowing how much fuel you use, you can adjust your driving habits to help reduce your fuel consumption.
• Fuel usage can help indicate vehicle issues. If you notice a sudden increase in your fuel usage, it may indicate something is wrong with your vehicle, and you should have it checked out by a mechanic.
• Tracking your fuel usage can help you plan for future trips. By knowing how much fuel you will need, you can make sure you have enough money to cover the cost of gas for your trip.

 Conclusion

You know tracking your fuel usage is essential if you're a trucker. After all, your business depends on it. That's why you should get familiar with IFTA.

IFTA makes it easy to track your fuel consumption and keep tabs on your tax obligations. It's essential for all truckers. So Don't wait. Start using IFTA reporting software today.