If you’re an owner of the trucking fleet, trucks sometimes feel like a burden. You need to take time out to prepare tax reporting, do paperwork and add your total expenses. Now with innovations like fleet management technology, companies can streamline their fleet operations with their taxes. Using fleet tracking and management technology, you can improve every aspect of your business, be it deliveries, filing taxes for calculating mileage. Fleet management helps companies to optimize all their fleet operations. Many fleet companies combine telematics with their management systems to get accurate data about their fleet vehicles, drivers, and equipment. Using technology helps transportation companies to save money on their taxes.Read More
In addition, it allows businesses to build work strategies and make informed decisions. Taking the right decision at the right time is essential for any business. Fleet tracking systems help companies with activity tracking, data calculation, fleet optimization, and GPS vehicle tracking. Companies use fleet management to make use of their available resources and do their work efficiently. Here are some ways to use a fleet tracking system to help you if you own a transportation company.
Filing Fuel Tax Reports:
A tracking system helps companies to be accurate about their fuel readings. This assists in ifta reporting online to the authorities. Drivers driving in Canadian states and the U.S districts for their business need to file an IFTA. IFTA stands for international fuel tax agreement. You need to file this tax to do your business in these districts. Filing an IFTA gives fleet companies an IFTA license that helps them travel to any community jurisdiction for business. Earlier, the companies had to pay any taxes.
This took a lot of time, and filing these taxes manually was different. Companies need to file this tax after a quarter. It is calculated by finding the amount of fuel tax drivers or company owners will be charged based on their fuel consumption. Some people think keeping track of your fuel expenses is easy. However, it is not so. You need to file paperwork to keep track of your fuel usage. Now with the increase in technology, the whole process has become more accessible.
While the drivers are the ones who need to maintain their fuel tickets and receipts. The companies need to keep track of their drivers’ total working hours. You need to keep track of your drivers by keeping receipts of time taken, fuel consumed and total distance covered by them. If you think you can handle this process manually, think again. Doing paperwork by hand leaves a place for mistakes and takes a lot of time. This is why freight companies use fleet management software and GPS-operated systems for their work. This software uses electronic trackers to store the exact amount of fuel consumed in each trip. It calculates the fuel tax you need to pay in a fraction of time. With the digitalization of the whole process, the companies do not need to em[ly more people to do their work or pay hefty fines.
There is no situation like the open road, and seeing things completely afresh.James Salter
Keep Track of Your Purchases and Equipment:
Irs has added a new deduction of taxes to its laws for the truckers. This deduction allows fleet companies to deduct some amount of money from their trucking equipment and vehicles. Trucking equipment included fuel-saving devices, trackers, logging devices, vehicle management systems, GPS, and other equipment that helps transportation companies to do their business. It has created an opportunity for fleet owners to deduct the value of their equipment from their taxes. You can calculate the total value of the equipment after it has completed its entire lifespan. The only exception to the deduction rule is computer and electronic equipment like cables, hardware, and software.
Benefits of Taxes:
Fleet technology helps transportation companies in many ways:
- It allows you to save extra money during the tax season.
- Fleet systems help freight companies to know about the change in tax laws or additional tax deductions. If you own a trucking company that reduces digital emissions with the help of fleet management software, you qualify for a green tax deduction. The government introduces tax deductions to encourage people to pay their tax dues on time.
- Investing in fleet management technology helps you in the long run.
Video Source: Arrow Truck Sales
Many fleet companies hire bookkeepers and accountants to maintain records. With the help of technology, accountants can do their job more efficiently. Softwares keep the companies updated about the newest changes in the tax systems or ifta fuel tax filing. This saves a company’s time and money. Some people keep an extra budget to repair their fleet technology. This helps the transportation companies to save money on taxes and can reduce their operational costs. Investing in fleet technology is the need of today as it saves money on your operating costs which includes taxes. This helps you to optimize your fleet company’ performance and make deliveries on time.