If you’re a business owner or a gig worker who drives for a living, mileage tracking is a must. But keeping track of your trips can take a lot of work if you’re using a spreadsheet or pen and paper.
Thankfully, many apps on the market can help you get your mileage tracking under control. They’re also more accurate than manually logging your miles, saving you time in the long run.
Automatic Recording
If you’re a business professional who travels for work regularly, keeping track of your mileage and reimbursement claims can be challenging. Using an app is the best way to ensure your data stays accurate and compliant with IRS rules and regulations.
You don’t have to manually enter the specifics of each journey because a mileage tracking app is software made to record your excursions as they happen automatically.. They also make storing this information accessible and submit reimbursements or deductions at tax time.
Several apps are specifically built for the gig economy, so they’re handy for Uber and Lyft drivers. Other full-fledged expense-tracking apps help you organize your records and estimate taxes based on income versus expenses.
A good mileage tracker can save you a lot of time and effort by automating most aspects of the process, including classifying trips as work-related and logging them into an IRS-compliant format. They can even provide downloadable mileage logs and a tax center that calculates your mileage totals and deductions.
Time-Saving
If you are an employer or contractor, mileage tracking can be time-consuming. It is easy to forget to write down your mileage, leading to missed tax deductions. Even if you are diligent, recording all your trips manually can take 21 hours per year.
Using a mileage tracker will automatically keep a complete mileage log that can be downloaded into a spreadsheet, PDF, or tax-compliant report to make your job easier. The app will also make reimbursements or deductions a breeze, with the information stored for you and ready to go when needed.
Several Mileage Tracking Apps are available for both small and large businesses. Some apps are free, while others cost a minimal monthly fee.
One such app runs in the background to detect and classify travel. It can track multiple vehicles and provide various reporting options, including reports by employee, trip type, and daily trip views.
Another option that automates the expense management process. It lets employees submit mileage expenses in their preferred format and automatically calculates the distance and amount based on differential mileage rates set by Finance. It also enables employees to duplicate or automate recurring mileage expense submissions.
Accuracy
Whether you’re a self-employed driver or the manager of a growing business, a mileage-tracking app can make your job easier. These apps are easy to use and can be paired with accounting software for quick and accurate mileage reimbursement.
A free mileage tracker app offers multiple options for expense tracking, gives managers more visibility into their team’s trips, and ensures IRS compliance. This app is rated 4.8 out of 5 on the App Store and is ideal for self-employed drivers and small businesses.
Another free mileage-tracking app is designed for teams with multiple vehicles. It allows employees to classify trips with one swipe on their phone, and reports are available through the company’s portal.
The app can be paired with an administrator portal that HR leaders can use to oversee and approve all company mileage. This reduces the time burden on program administration and makes it more likely that employees will complete their mileage logs accurately.
Choosing a mileage tracker that can accurately record where you’re driving and predict your trip length is essential. This can help you save money on gas by allowing you to plan your routes more effectively and avoid unnecessary trips. However, you’ll need to set location permissions in the app before it can begin tracking your driving habits.
Reporting
One of the best things about using a mileage tracking app is its reporting features. They make tracking your miles and expenses easier, which can help you prepare for tax season and save you a few bucks in the process.
For example, it has an intelligent software feature that recognizes frequent trips and automatically classifies them as business or personal. They also have a friendly swiping interface that lets you review your travels in seconds. They also have a tax estimator that will give you an idea of how much you may owe on your next round of taxes.
In addition to the standard reports, these apps can display some of the most impressive graphs and charts I’ve seen on the market. They can also provide users with a list of their most essential trips.
There are many options for mileage tracking, and you’ll want to be sure that you choose the one that fits your needs the best. Here are a few of the most popular:
They’re all very different, so you’ll need to research them before selecting a mileage-tracking app for your company. Some are better suited for specific situations, such as ridesharing drivers or companies with multiple employees that work at different times.