If there's anything that's essential to remember when you're a truck operator doing business throughout Canada and the USA, it's that accurate IFTA tax tracking and reporting can make or break your company. If you run afoul of the law when it comes to taxes, at the least it will be a major headache to deal with the repercussions and getting everything in order, and at worst it could threaten the very livelihood of your company. To avoid such issues, you'll need to invest in fuel tax software that is comprehensive, easy to use, and efficient. Here's what you'll need to do in order to find the software that's right for you and your business.
Understand the International Fuel Tax Agreement and How It Relates to Your Business
If you don't understand how this law affects your operations, it will be that much harder to correctly keep track of any taxes you may owe or any refunds you may be entitled to. Even if you have a dedicated tax lawyer or accountant who deals with this kind of thing in your company, it's wise to be aware of at least the basics of how the law works and what it means for your bottom line. If nothing else, it will help you understand any tax reports or problems these professionals may bring to your attention and assist you with making the right business decisions in regards to taxes as leader of your company.
At its core, the IFTA exists to simplify tax permitting and fuel usage reporting for the jurisdictions being operated in. As such, making sure you're calculating your IFTA taxes correctly is only going to make life easier for you when dealing with the various states and provinces you run your trucks through. Taxes are still taxes, however, and can be complicated to understand and calculate if you're not using the right tools to do the job. For example, if you don't know for sure whether your vehicles weigh over 26,000 pounds or if their power units have three or more axles, you won't know whether or not the IFTA tax will be required for them. IFTA tracking software can help you keep track of all of this information and sort it so you can be on top of your tax game.
Know What Benefits the Proper IFTA Tax Calculation Software Will Bring to the Table
How do you know which IFTA fuel tax calculation software will be the best for your business's situation? Start by looking for the following features in the software:
Frequent updates - Efficient tax calculation software will automatically update tax rates for each jurisdiction you do business in as they change. It should also be able to preserve the history of each state or province's tax rates so that you can go back and compare the rates if need be.
Extensive reports - The software you choose should give you access to a wide variety of reports to help you organize and sum up all of your relevant tax information. It should be able to provide you details about things like each vehicle's average mileage, toll mileage vs. non-toll mileage costs, and lists of historical data for each quarterly tax report you've filed.
Accurate data checks - The software should thoroughly check and double-check each data entry point to ensure that there are no errors in your calculations. It should be easy for you to compare the data against previous reports and rates and to fix any problems or discrepancies that may arise.
If any of this sounds intimidating, it may be best to consult with your accountant or other qualified tax professional to get the help you need with choosing the right software. Once you've got what you need, you should be able to keep on trucking with ease.Share