The International Fuel Tax Agreement (IFTA) is a critical tool used by trucking companies to keep track of miles traveled and fuel purchased in various jurisdictions. With the increasing demand for more efficient and streamlined record keeping, the future of IFTA record keeping is becoming more critical than ever. As the industry continues to evolve, it’s essential to stay ahead of the curve by understanding and predicting the trends in IFTA record keeping.
Companies must consider the latest technologies, regulations, and customer needs to remain competitive and compliant. By looking at the current landscape of IFTA record keeping, we can make educated predictions about this important field.
Overview of IFTA
IFTA is a multilateral agreement between individual countries that lays out the rules for trucking companies to keep track of the miles their vehicles drive and the fuel they consume. Regulators and insurance companies use this information to ensure compliance with laws and regulations.
The key components of an IFTA record are:
- The Vehicle Identification Number (VIN) is a unique number assigned to each vehicle according to the engine and chassis number. Trucking companies use the VIN and odometer reading in combination with GPS data to keep track of their mileage and fuel.
- Fuel Stops – Trucking companies keep track of all the fuel they purchase with a stopwatch app. Regulators use this information to ensure compliance with laws and regulations.
- IFTA Fuel Permit – Trucking companies also use a permit system to track the IFTA fuel they import into the country.
The Current State of IFTA Record Keeping
In recent years, the technology and infrastructure necessary to keep track of IFTA record keeping have changed significantly. In the past, companies would have to rely on paper records, which were manually reconciled with physical odometer readings. Logistics companies would keep track of their fuel purchases with a stopwatch app to track fuel.
To keep track of miles driven, trucking companies would rely on a VIN that, although unique for each truck, did not reflect the exact mileage of each trip. With the development of modern digital record keeping, the landscape of IFTA record keeping has become even more accessible, scalable, and reliable. Companies can now keep track of millions of records with near-perfect accuracy. As a result, the current state of IFTA record keeping has revolutionized the trucking industry by bringing a more transparent and efficient experience to customers, regulators, and insurers.
Trends in IFTA Record Keeping
As the landscape of IFTA record keeping has changed, so has the way companies use it. As the industry becomes increasingly data-driven and automated, the status and purpose of IFTA record-keeping have become more important than ever.
With this in mind, trends in IFTA record keeping over the past few years can help forecast this field’s future.
Customer Needs and Preferences – One of the most significant trends in IFTA record keeping is the shift from paper to digital records. With the ability to track millions of records and near-perfect accuracy, digital record-keeping has become a primary option for many companies. For customers, this accessibility to digital records has become vital as they seek to be more aware of their environmental impact. With this in mind, many customers have begun to push for companies that use digital records, as they prefer them to be more eco-friendly.
Regulation Awareness – Another trend in IFTA record keeping is the growing awareness of regulations among industry players. With the public becoming more aware of the impact of their industry, many companies are taking steps to be more compliant with laws and regulations. Due to the increased regulation surrounding IFTA record keeping, many companies are also taking steps to comply more with IFTA rules. This includes awareness training for employees, better management of data, and more stringent auditing procedures.
Automation and AI – The final trend in IFTA record keeping is the proliferation of automation and AI. With the development of advanced tools, companies can now automate several different tasks to gain more control of their data and reduce costs. This includes the tracking of fuel and miles, the authorization of IFTA fuel permits, and the reconciliation of data. With advanced tools like drones, GPS trackers, and blockchain technology, companies can automate many processes previously done manually.
Future Predictions for IFTA Record Keeping
With the future of IFTA set to be even more automated and accessible, it’s essential to consider the current trends in the field. Looking at the trends in IFTA record keeping, we can make some educated predictions about the future of this field.
Increased Accessibility – The current state of digital recordkeeping has made IFTA recordkeeping accessible to more players in the industry. This has led to the proliferation of digital record keeping, as many companies now use this method. As the accessibility of digital record keeping has increased, so has the demand for it. This has led to the proliferation of advanced tools, such as drones and blockchain technology, to gain an advantage.
Increased Accuracy – With the development of advanced tools and infrastructure, the future state of IFTA record keeping is expected to improve data accuracy. This is expected to significantly impact the trucking industry, which is currently plagued by under-reported data.
Increased Automation – The increased accuracy of IFTA record keeping is expected to increase automation significantly. This is expected to reduce the amount of human intervention required and allow automation to be used fully. – Increased Regulation – The increased accuracy of IFTA record keeping is expected to lead to increased regulation. This is expected as regulators will likely fine-tune their rules to ensure greater compliance.
How to Prepare for the Future of IFTA
To prepare for the future of IFTA record keeping, it’s essential to understand the current trends in the field. With this in mind, it’s necessary to consider the following:
Automate and Automate Everything – The ability to automate many tasks has allowed companies to gain more control of their data. This has led to development of advanced tools, such as blockchain technology and drones, to gain an advantage.
Data Management – Another way to gain more control of the data is to automate the reconciliation of data. This allows data to be retrieved from the most reliable source, such as blockchain technology.
Audit the Data – Many companies will employ a rigorous auditing process to ensure data accuracy. This allows data to be double-checked and audited to ensure accuracy and compliance.
Summary
The future of IFTA record keeping is very bright. With the increased accessibility to advanced tools and infrastructure, the future state of IFTA record keeping is expected to improve accuracy. This is likely to lead to a significant decrease in reported data and an increase in regulation. Trucking companies need to keep track of their data to comply with regulations and ensure a transparent and efficient customer experience.
TMS-Digital’s IFTA Manager offers a comprehensive and user-friendly platform for managing International Fuel Tax Agreement (IFTA) compliance. With IFTA Manager, you can easily track fuel usage and mileage, generate IFTA reports, and quickly file returns from a single platform. With features like real-time data tracking, automated calculations, and 24/7 customer support, TMS-Digital streamlines the IFTA process, saving you time and reducing the risk of errors.
So if you’re looking for a reliable and efficient solution for your IFTA needs, choose IFTA Manager by TMS-Digital. Start streamlining your IFTA compliance today by scheduling a demo.
