Wednesday, January 27, 2021

Importance of GPS Vehicle Tracking System in automating IFTA reporting

The Takeaway:

GPS vehicle tracking technology helps companies in tracking the location of their fleets    and the technology also provides companies with ample data. The data can be later used by companies to improve the efficiency of their operations and take informed decisions for other cost-saving decisions.

To capture the vehicle data, a tracking device is installed in the vehicle for the purpose of tracking. The installed device collects the vehicle data which ranges from data related to fuel consumption, the location of the vehicle, and the working of well-connected devices.

How does GPS Vehicle Tracking Technology work?

The GPS vehicle tracking technology relies on two components. Hardware and Software.

  1. GPS tracking hardware collects information regarding the specific vehicles speeding data, position of the specific vehicle, and several other important data and transfers the data to the software.
  2. GPS tracking software displays the data in different formats such as location of specific vehicles on a map, specific information in table formats, and much more.

What problems do a GPS vehicle tracking system solve?

GPS vehicle tracking systems can help successfully tackle a good number of problems, provided it is used in an efficient manner.

  1. Cost Reduction – The GPS vehicle tracking system can save money in several ways, starting with reduction in administrative time to helping in decreasing fuel consumption of its fleets.
  2. Digitization – The digitization of the fleet management and fleet documentation, can help moving towards a paperless administrative work.
  3. Inflow of Genuine Data – The GPS vehicle tracking system would provide the organization with genuine and uncompromised data, as there are several metrics which cannot be tracked using manual methods.
  4. Organization of Efficient Routes – The system would help organizations in planning the most efficient route, as it can provide routes with less traffic congestion and which are fuel efficient.
  5. Automation of Compliance – Several software would allow users to record all the required information for compliance purposes which can be accessed remotely.

Who is currently using the GPS Vehicle Tracking System?

The GPS Vehicle Tracking system is heavily used in the logistics and transport companies. However, this technology can be used by any company that uses a fleet of vehicles in order to perform its business activity.

The several features available in the GPS vehicles tracking system can benefit companies in several different sectors. Lately, it is being heavily used by large construction companies with large numbers of vehicles in its fleet, to manage and track the position of their vehicles to avoid or reduce theft.

The importance of the GPS vehicle tracking system is its ability to be customised to meet the specific requirements of its users. Based on the requirements provided by an organization, the system can be customised and help them in improving their efficiency.

The GPS vehicle tracking system has become an important foundation for car-sharing mobile applications, for food delivery companies, for mobile applications which provide timely updates and tracking of public transportation like public buses, and ride hailing services.

What is IFTA?

The International Fuel Tax Agreement (IFTA) is an agreement signed between the 48 states in the United States of America and 10 provinces in Canada. The agreement requires all interstate vehicles to report fuel taxes. This agreement however does not come into effect in Hawaii, Alaska and the 3 northern Canadian Provinces.

The IFTA reporting system was brought in to replace the old fuel tax system. The IFTA reporting system has simplified the hassle of fuel tax reporting, more so for trucking companies, who operate across IFTA jurisdictions. The IFTA reporting system has significantly reduced paperwork involved and has reduced the compliance requirements for the trucking companies.

What are IFTA tax rates?

The IFTA tax rates vary by the state or province and are changed each quarter.

How does IFTA work?

The owner of an organization with an IFTA qualified motor vehicle is required to submit an IFTA application. Upon submitting the IFTA application, the organization receives an IFTA license along with an IFTA decal for all of its IFTA qualified vehicles. If and when fuel is purchased in IFTA jurisdiction, the amount payable is logged into the trucking company’s IFTA account.

IFTA licensed organizations are required to submit an IFTA report at the end of each quarter. The report contains the details regarding the total miles driven by the IFTA qualified motor vehicle and the total amount gallons purchased. This report helps in determining the total amount of tax owed by the organization or the refund owed by the authorities.

It is mandatory for the organization to file the IFTA report as long as the vehicle is operating. The IFTA report can be filled either electronically, or by physically filing the report in the IFTA offices.

The Importance of GPS Vehicle Tracking System in Automating IFTA Reporting

In order to reduce the hassle of paperwork involved in filing IFTA reports, organizations have increasingly started to opt the GPS Vehicle Tracking System to do away with the time- consuming and manual process.

The GPS Vehicle Tracking System helps in reducing the inaccuracies in IFTA reports, the system provides an exact number of miles driven by the specific vehicle in each state. This reduces the administrative work of the organization.

The system increases efficiency in gathering the necessary fuel tax information required for IFTA reports and provides GPS insights with accurate data all in one single report.

The system eliminates the need for an employee of the organization to go through the driver’s log in order to report the miles driver in each state, which saves a substantial amount of time and energy.

Disclaimer: The article reflects the opinions of the author and is not representative of CloudStory or TimesNext’ views.
The article does not offer any investment advice. User discretion is advised. Extensive and diligent research should be carried out by the reader before making a decision or buying any product or services.

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