5 Benefits of Automated IFTA Reporting for Freight Carriers

The International Fuel Tax Agreement (IFTA) is an important piece of regulatory compliance for freight carriers to know and understand — requiring commercial trucking companies in the United States and Canada to report fuel purchased in each jurisdiction each quarter. With the IFTA reports provided, freight carriers may need to pay additional fuel taxes or may be eligible for a refund for fuel taxes already paid throughout the year and can be subject to fines for compliance violations.

Freight carriers and trucking companies understand how IFTA reporting can be complicated and is a hassle in many respects — but may not know how much a Transportation Management System (TMS) can help. By automating many aspects of IFTA reporting, freight carriers can avoid regulatory fines and much more. To illustrate why automated reporting is a valuable asset, we have created this list of 5 Benefits of Automated IFTA Reporting for Freight Carriers at TransPlus.

What Are the Benefits of Automated IFTA Reporting for Trucking Companies?

Automated IFTA reporting is more than just a convenient feature for trucking companies — it's a strategic initiative with tangible benefits. By integrating with an end-to-end Transportation Management System (TMS), this feature streamlines a tedious and error-prone process, making it a more efficient and more accurate function. This not only saves valuable time and resources, but significantly mitigates the risks associated with manual compliance, making it an invaluable asset for any modern freight carrier.

1. Reduced Administrative Paperwork

Can you imagine a dispatcher spending hours each quarter manually going through stacks of fuel receipts and mileage logs? Automated IFTA reporting eliminates this labor-intensive task. Instead of organizing and sorting physical documents, all critical data is automatically captured and organized within the TMS, allowing your team to focus on more important operational tasks rather than data entry.

2. Improved Accuracy for IFTA Reports

Manual data entry is prone to human error, which can lead to inaccuracies in IFTA reports that lead to compliance fines. With an automated system in place, fuel purchases, mileage, and jurisdiction information are recorded accurately and calculated in real-time. For example, a driver fueling up in Ohio will have that transaction automatically categorized and applied to the correct jurisdiction, minimizing errors and ensuring more precise reporting.

3. Reduced Risks of Compliance Penalties and Audits

IFTA compliance is complex, and minor errors can lead to significant financial penalties and time-consuming regulatory audits. Automated reporting reduces this risk by ensuring all data is consistent, accurate, and properly categorized according to IFTA regulations. This more proactive approach minimizes the chances of red flags that could trigger an audit, saving your company from potential fines and damage to your reputation.

4. Reduced Administrative Costs and Improved Management

The time saved by automating IFTA reporting translates into reduced administrative costs. Less time spent on manual tasks means fewer labor hours dedicated to IFTA compliance. In addition, the comprehensive data insights provided by an automated system allow for better fuel purchasing strategies and route optimization, leading to improved overall management and cost efficiency across your fleet.

5. Improved Operational Efficiency

When your administrative team isn't bogged down with IFTA paperwork, they can dedicate their efforts to more productive tasks that directly impact your operations. Drivers will also benefit from simplified data capture, spending less time on tedious data entry and more time on the road. This overall improvement to efficiency allows your company to operate more smoothly and drive productivity and profits.
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READ MORE: 5 Must-Have Features for Your TMS

This list of 5 Benefits of Automated IFTA Reporting for Freight Carriers is clear and compelling. From reducing paperwork and improving data accuracy to mitigating risks and enhancing operational efficiency, this valuable feature can be a real game-changer for freight carriers. 

Are you ready to experience these benefits firsthand? Contact TransPlus today for a demo of the TransPlus TMS platform and see how we can revolutionize your IFTA reporting!