A method of determining a heading of a machine having an implement is provided. The method includes determining a first heading data of the machine using an inertial sensor. The method includes determining a second heading data of the machine using a magnetometer. The method includes determining a position of the implement in a stationary state. The method also includes calculating a corrected second heading data based on a predefined relation between the position of the implement in the stationary state and the second heading data. The method further includes determining the heading of the machine based on the first heading data and the corrected second heading data.