IFTA Decal /

Every trucking company owner wants to see their business develop just like every entrepreneur in the world. But competing with larger fleets and industry leaders can sometimes be difficult and impossible because they offer more aggressive pricing, hire drivers more quickly, get better discounts from their suppliers, and deliver faster. These issues can make expanding your business challenging. Not to mention the regulation trucking companies needs to follow. These include filing IFTA Fuel Tax Return, obtaining IFTA Permit, IFTA Decal, IRP Plates, and many more.

So, what can you do to compete with the big guys and grow your trucking business? Global Multi Services have compiled vital tried-and-true tactics that successful trucking business owners use to get their companies on the right path for prudent growth.

USE STATE OF THE ART TECHNOLOGY

As a business owner, you have many responsibilities and need to make sure everything is in order.  From ensuring your trucks are in good condition to hiring the best drivers, dispatchers, managers, and many more. These can sometimes be tough but, the good news is that technology can help you out. Using state-of-the-art technologies helps to be organized, manage finances, coordinate with drivers, and reduce stress.

It also helps truck drivers navigate the road, record miles and fuel gallons in each jurisdiction, determine the best routes, and many more. These ensure safety, compliance, productivity, maintenance, and efficiency in your trucking business. Tap into the growing technology today to save time, energy and grow your business.

FILE IFTA FUEL TAX RETURN

Nothing stays the same in the trucking industry, not even its regulations.  Changes, alterations, and new rules are being proposed and incorporated all the time. Failure to comply or bridge those rules can lead to downtime, hefty fines, license revoke, and many more. Therefore, it is vital to stay up-to-date with the Department of Transportation and the Federal Motor Carrier Safety Administration regulations.

Companies like Global Multi Services can handle your paperwork and trucking permits without stress and help you stay in compliance. They will help file IFTA Fuel Tax Return and ensure all your miles and fuel gallons records are accurate. These prevent you from fines, delays, and avoiding mistakes while growing your trucking business.

HAVE A BUSINESS PLAN

Planning and setting goals help you stay focused on what you envisioned for your trucking business. Without adequate planning and proper maintenance, you might not be able to last for a year or two in the trucking industry. You have to build a network of customers with good customer service and efficiency. Being genuine to your customers also helps your trucking company have a sense of reliability and authenticity.

Streamlining your operations and acquiring more clients help grow your business. Build trust with customers that are profitable and beneficial for your business.  These may look tedious at first but building relationships with the right clients will give you a good reputation and better standing when approaching more clients in the future.

The trucking industry is one of the biggest industries in the United States, and it is composed of small and medium-sized businesses.  It is also highly regulated, and motor carriers need to file IFTA Fuel Tax Return if they operate across more than one jurisdiction.

Transportation plays a vital role in trade facilitation and has become a key element in the success of the business operation. But its volatile customer demands and complex business models make it difficult to streamline its management.  According to one logistics study, cutting transportation costs top the list of challenges faced by trucking companies. Others include technological advancements and innovation without exceeding their budget.

Reports have shown that the trucking industry generated more than 60% of the nation’s entire freight bill. However, while trucking companies move billions of dollars of goods across the country each year, they face myriad challenges that can prevent their companies from meeting their full potential. Read on as Global Multi Services takes us through the challenges faced by trucking companies.

DAMAGED INFRASTRUCTURE

It is not news that the roads and bridges in the United States need improvement. Crumbling bridges, roads, and tunnels in the country have led to hours of traffic delays and the use of billions of gallons of fuel. Since most trucking charges are based on distance rather than time or fuel cost, these delays affect their revenue.

Poor roads and bridges also cause damage and accidents to the truck that drive on them. According to reports, 15% of the nation’s roadways are in poor condition. These contribute to over $100 billion every year in extra truck repairs and operating costs.

IFTA FUEL TAX RETURN AND OTHER REGULATIONS

The regulations given by the trucking industry are ultimately in place to make things safer. But keeping up-to-date with them and abiding by them can be challenging. For example, federal regulations require truck drivers to record fuel use and mileage covered in each jurisdiction. And trucking companies must file IFTA Fuel Tax Return Quarterly in their base state. Failure to comply and error while filing can lead to hefty fines. They also need to obtain MC Authority and other permits from the Federal Motor Carrier Safety Administration.

LACK OF DRIVER RETENTION

Another big challenge for trucking companies is the driver shortage. According to the American Trucking Association, the trucking industry is currently short approximately 30,000 to 35,000 drivers. They expect an increase to 245,000 by 2022. One of the causes of driver shortage is that long-haul truck drivers have considerably lower pay than others.

Another serious issue is that federal regulations require drivers to be at least 21 years old to have the license needed for this line of work. These leave a three-year gap between high school graduation that draws potential drivers away into other industries.

ONBOARD TRUCK TECHNOLOGIES

The rapid advancement in technology has created many challenges for trucking companies to stay up-to-date with upcoming equipment. Though the latest technologies are attractive, their implementation is quite challenging. Additionally, the use and costs of the Electronic Logging Device mandated by the FMCSA have caused concern for the industry.

Before IFTA, truckers operating across state lines were required to file fuel tax in every state they passed through. The process was difficult and time-consuming which made staying in compliance challenging for truckers. It was obvious truckers need a faster and more efficient way to streamline the collection of fuel tax. This led to the establishment of the International Fuel Tax Agreement [IFTA]. Read on as Global Multi Services explain IFTA and its importance.

What Is IFTA?

The International Fuel Tax Agreement is an agreement for collecting and distributing fuel tax paid by interstate motor carriers. This agreement is made between the Province of Canada and the states in the US excluding Alaska, Hawaii, and the District of Columbia.

Under IFTA, motor carriers receive IFTA Permit and file a single Quarterly IFTA Fuel Tax Report in their base state. This information helps determine the fuel tax of each member state which is then paid by motor carriers to the base state. The fuel tax is then calculated based on miles covered by truckers in each state and redistributed to the member state.

Importance Of IFTA

Improves Efficiency And Accountability

All motor carriers and truck drivers under IFTA must meet specific qualifications. They are required to obtain their IFTA Permit and IFTA Decals annually and submit their Quarterly IFTA Fuel Tax Report to their base state. This ensures all taxes are paid on time and in a proper manner. IFTA also imposes fines and penalties for motor carrier and truck driver’s late reporting or payment. This helps everyone to be accountable, efficient and reduces error.

Reduces Paperwork

Research has shown that 15% of truck accidents are caused by driver’s fatigue and drowsiness. One of the things that contributed to this is the high volume of paperwork motor carrier drivers need to submit daily. Many truck drivers spend hours filing all kinds of forms and report instead of resting after a long trip. The establishment of IFTA has reduced the stress driver face with paperwork. Thus improving highway safety and reducing accidents.

How To Register For IFTA

IFTA registering is one of the most important processes to operate as a motor carrier legally in the US. All trucking company that requires an IFTA license needs to apply in their base state. The license application can be filled online and issued by the Department of Transportation for your state or other verified agencies. IFTA Permit requirements include USDOT Number, Federal Business Number, Registered Business Name, and Mailing Address.

After submitting your application, it will be processed and an official IFTA decal and IFTA license for the current year will be issued to you by the IFTA authority in your state. IFTA Permit expires every year therefore, you must register to obtain a new permit before the third month of the following year. Failure to do so can attract hefty penalties that can affect your trucking business.

Filing IFTA Fuel Tax Returns

IFTA Fuel Tax Return is filed to the motor carrier base state at the end of the fiscal quarter. The tax return shows the list of miles traveled by the motor carrier in all member states and gallons of fuel purchased there.