Best Ways to Calculate Your Miles by State
Running a trucking business without understanding the importance of miles is like driving while keeping your eyes closed. Also, if you do not know the price of each mile you tend to drive, you cannot get the most accurate information about the best per-mile price that you should charge to your shipper. Eventually, this makes it very daunting to keep track of your profit.
Here, understanding the ins and outs of calculating the mileage for IFTA tax reporting also plays a crucial role, especially if you want to prevent conditions like being audited or fined unnecessarily. The International Fuel Tax Agreement was simply introduced to simplify track and report the fuel consumed by the carrier. Additionally, there are strict guidelines that are meant to be followed by state mileage app in terms of IFTA taxes. For instance, filing for IFTA after the given timeline or making a mistake in the report may result in underpayment and can have some serious consequences.
In this write-up, we have added all the information for the trucking owners to calculate and track the miles travelled by state and save as much as they can.
Determining the Total Miles You Expect to Drive
The most important thing here is to understand the insights of calculating the total number of miles you are expected to drive in a month. Also, this data must include aspects like compensated or uncompensated miles accordingly.
Not Down the Fixed Expenses While Travelling
Remember, your fixed expenses are the expenses that are consistent every month regardless of the mile you drive. For instance, the truck-related payments are said to fall under fixed expenses. It is simply because they stay the same no matter how many miles you drive. To categorise it for you, these may include Insurance, License Plates, permits, maintenance, and much more.
Fuel Related Taxes
One of the most common mistakes many trucking business owners make is thinking- cheapest fuel+ tax price makes you get the cheapest fuel around. Well, this is not always correct as the pump prices can be quite fluctuating.
The drivers or business owners have to pay IFTA to every state listed as they drive through. Here, the tax price is based on the gallons of fuel used along with the miles driven in some states as implemented by the jurisdiction which can be handled with the ifta state mileage calculator.
Reduce the Broker‘s Involvement
Every time you get an order from a broker, you unexpectedly give away a sound portion of your earnings to him/her. Here, pulling a load at a low price is much better than doing nothing at all, especially if you charge enough depending on the mile. Here, the brokers can really be useful if managed in the right manner. To do that, you need to reduce your dependency in terms of the broker and try working out independently by building up the connections directly with the shipper. Lastly, this approach is the best way to convert your money into profit while in the trucking industry.
Video Credit: The Truck Driver Guy
Try to Google it!
You might be thinking that you can Google all the information to solve your trucking-related problem. Well, you can always use Google Maps, Docs, and sheets to get your things done such as calculations, keeping a mile record, bookkeeping, and more. It can be a little challenging to keep everything updated at the start, but you will automatically figure it out by gaining experience in miles travelled per state.
To simplify the process you can also consider going through the following steps:
- Try to compute the IRP by using the same data.
- Calculate your expenses and incomes to understand areas you are losing money on.
- Try keeping track of your maintenance and schedules according to miles travelled, this may also include aspects like oil changes, engine problems, or even tires.
Try Getting Accounting Software
The only way to successful management in terms of revenue generation and expenses is by using the right accounting software. List down your business needs and then search for the ifta tax calculator software online. Settle down for the system that provides the best base package at no extra cost, this means you will be able to access the software in a limited budget without worrying about anything else.
Also, instead of spending hours on your computer, try investing in a Trucking bookkeeping for drivers to make your processes even simpler and effective- this will help you to make the most of your software investments providing you with the maximum value and high profits.