A business mileage tracker’s four most important features are ease of use, tax-deductible, reliability, easy integration, and tax relief. Unfortunately, the older methods require redundant administrative tasks and create loopholes. Many organizations have not yet adopted newer, more effective systems like https://mileiq.com/ because they are uncomfortable with the idea of being monitored by “Big Brother.” Unfortunately, sticking to outdated processes will only increase costs and create loopholes.
Easy to use
Choosing an easy-to-use business mileage tracker is essential if you want to keep track of your business expenses and miles. Mileage tracking apps will help you avoid tedious paperwork and manual entry, making reporting more accessible and accurate.
Most mileage tracker apps offer free or premium plans, with the free option allowing you to enter your start and stop locations. Then, it will calculate distance and cost based on differential mileage rates. Other features of mileage tracker apps include automatic reporting, receipt uploads, and team analytics. For example, stride, a free mileage tracker app, will automatically log every mile and produce IRS-ready reports.
Tax-deductible
While most of us don’t need to track our mileage for our taxes, 1099 contractors can claim a significant write-off on their vehicle expenses. To qualify for this write-off, you must log all your business miles. Mileage tracking apps are the easiest way to keep track of these miles.
Keep an accurate mileage log. You can choose which method to calculate your miles. You cannot change the method within the same tax year, so choose carefully. If you can’t remember a specific trip, you can auto-populate it. Mileage Apps also lets you create a 100 percent IRS-proof mileage log.
Reliable
It’s hard to keep track of business mileage with the help of a spreadsheet or even your smartphone. However, there are now apps and websites that can help you track your business mileage, and you can get expert guidance from an accountant or bookkeeper. You can also use industry-standard bookkeeping software designed with contractors in mind. It has recently relaunched a stopwatch timer that allows you to attach time to an invoice.
MileIQ is one of the most popular business mileage trackers available. This app automatically logs business miles and expenses and is compatible with your business bank account. The app helps you keep track of business expenses and automatically calculates your tax deductions. MileIQ also categorizes your business mileage by type, so you won’t need to keep a separate log for personal use. And because it is a business mileage tracker, it automatically starts recording whenever you drive.
Easy to integrate
If you run a small business, you need a way to track your employee’s mileage. Mileage tracking apps help calculate expenses and ensure you don’t miss a mile. Manual mileage tracking involves referencing the odometer on the vehicle and entering the starting and ending addresses. An easy-to-integrate mileage tracker with CRM software will eliminate the need to record the mileage and create a records database manually. The benefits of mileage tracking apps are apparent. They allow you to automatically calculate the value of your business trips and generate tax reports.
Businesses of all sizes can benefit from a mileage tracking app. These apps eliminate tedious tasks, such as recording miles traveled and actual expenses. But not all mileage tracking apps are created equal. Despite being beneficial to small businesses, some have confusing interfaces and are challenging to use. That makes day-to-day usage less enjoyable. An app should also offer logical paths for navigating. That way, you can easily find what you need and make navigation easier.
