Even if you have never been audited, you may have heard of others who have and the pain they have gone through. For failing to file the correct IFTA information, some motor carriers have paid thousands of dollars in interest and penalties. Others have had to close their motor carrier or trucking companies because the fines were too high. IFTA auditors are interested in something other than driving motor carriers or trucking companies.

However, if you fail to file the accurate mileage and fuel information, auditors may come knocking sooner rather than later. IFTA multi-accountants for Fleets will audit the licensee's distance accounting system at least every three months, or once a quarter, to ensure that all distances are correctly recorded in your IFTA reporting.

Mentioned below are the tips for audit preparation:

● IFTA multi-accountants will examine, test, and learn about the motor carrier's accounting system for measuring the distance or the actual process. If original driver records are available, they will also look for them. So, keep track of your supporting fuel documentation and mileage.

● Your mileage recording devices must record pings every 15 minutes or less to be IFTA compliant.

● Use precise readings corresponding to your trip drops and picks as well as logos, no matter if these readings are collected electronically or manually.

● The primary source of that auditors will look at will be your primary mileage recording device or another method of recording your miles per state. A fuel card that records miles or kilometres will be considered only if your central mileage system has gaps in the mileage.

As a result, it is best to have only one accurate central mileage recording system. If you already have a primary mileage recording system, don't waste money and time on a fuel card system that keeps track of mileage.

● Each quarter, avoid missing fuel data or mileage.

● IFTA and IRP audits aim to ensure that your compliance record-keeping is correct. Audits are performed because they serve as the validation vehicle for the IFTA programme on behalf of all member countries. It is the vehicle through which all member jurisdictions' taxes are collected. So, keep thorough and accurate records of your mileage and fuel consumption.

● The IFTA mileage should be the same as the IRP mileage.

● Use IFTA multi-accountants in Canada that assist you in keeping accurate records, organizing them, locating missing mileage, generating accurate reports, running unlimited accounts, and storing your data for six years in excess of IFTA requirements.

Final Thoughts

The best way to avoid IFTA multi-accountants Canada is to adhere to regulations strictly. An accurate and reliable distance accounting system is critical for preventing an IFTA audit under the International Fuel Tax Agreement. Remember that the distance accounting system of the motor carrier or licensee is the audit's focus. This is critical because distance allocation according to the jurisdiction is used to calculate the licensee's tax liability and fuel consumption for each jurisdiction.

Brian Styris is the author of this article. For more details about Trucking Compliance Services please visit our website: etrucks.com