Whether you’re a rideshare driver, delivery courier, or an independent contractor, tracking your business mileage is a must. It can save you time and money at tax time and improve your fuel efficiency.
While some freelancers choose to keep track of their mileage on paper, an app can make it much more manageable. It will automatically track your trips from the background, categorize them, and ensure they’re accurate.
Tax deductions
The tax deductions available with a mileage tracker can be huge. There are two main methods: claiming the standard mileage rate or actual expenses. When claiming the mileage deduction, you must keep accurate and detailed records of your miles. These documents can be called a mileage log, mileage book, mileage form, or mileage sheet and should include dates, destinations, and reasons for travel.
For example, if you drive and get paid per trip, it is essential to track your travels throughout the year and make sure they are consistent.
While having these records is a good idea, it is also important to note that the IRS may only allow your mileage deduction if you provide proof of your travel. Keeping these records is essential and must be done in the same order as you drive for your work.
Improved safety
A mileage tracker is necessary for mobile professionals who spend much time behind the wheel. This includes rideshare drivers, couriers, and independent contractors. It also comes in handy for businesses with a fleet of vehicles that must be tracked and accounted for.
The best mileage trackers will save you time and money in the long run by allowing you to accurately calculate how far your fleet of vehicles travels, which can lead to better fuel efficiency and more effective tax planning strategies. Consider integrating a mileage tracker with your accounting software. This will allow you to track your mileage in real-time, making it easier to get reimbursed for your hard work.
A good mileage tracker will also help you make better decisions based on data, ultimately leading to higher profits and more satisfied customers. This is especially true for companies with multiple employees who spend a lot of time on the road. Choosing a tracker compatible with your company’s specific vehicle specifications is also essential, providing you with the most accurate information possible.
Better fuel efficiency
If you want to save fuel money, a mileage tracker can help you achieve this. It will track your travel miles and allow you to calculate your mileage tax deductions.
It also shows you how much fuel your car consumes and allows you to plan better ways to use it. This helps you reduce petrol consumption and save money on maintenance and repair costs.
One way to improve fuel efficiency is to remove any unnecessary weight from the vehicle. This is based on a principle of physics: the heavier an object is, the more energy it requires to move it.
Another way to reduce gas consumption is to drive at a slower speed. While each driver reaches optimum fuel efficiency at different rates, slowing down can save up to 10% of your fuel bill.
Some entities offer an easy-to-use solution to track and train drivers on fuel-efficient driving. It uses intuitive sensors to detect harsh braking and speeding. It then sends out light alterations to help drivers improve their fuel economy.
Time-saving
Keeping track of your business mileage can be a time-consuming task. Even if you use a paper logbook or an Excel spreadsheet, it’s easy to miss a few miles and forget to record them.
A mileage tracker is a much better option to save time and money. These apps automatically log mileage when you drive and connect with accounting software to make it easier for your employees to receive reimbursements or deductions.
Another way that a mileage tracker can save you time is by cutting down on the number of trips. This can mean that you’ll be able to save money on fuel costs, which is excellent for any business.
You can use an app to track your mileage and expenses for a few dollars a month while reducing the time it takes to complete each trip. Some apps even offer a free trial to check out their features and determine which is right for you.
Better organization
A mileage tracker can help you organize your business trips and expenses by date, purpose, or category. This can save you time and energy. It can also help you keep better records for tax purposes, making it easier to claim deductions. You can even set up a company policy that requires drivers to track their miles.
Mileage tracking apps can also minimize admin tasks and automate reporting, leaving more time for higher-level tasks like growing your business. Apps are efficient enough to run in the background and will automatically start recording when you’re driving. Some apps will even learn your routes, allowing you to differentiate business and personal mileage easily.
Many companies still use paper mileage logs or spreadsheets, but the technology is changing rapidly. A new generation of GPS-based mileage tracking applications is emerging to take advantage of this powerful technology and make logging your business mileage more accurate and convenient. Don’t get left behind — try a 30-day free trial to see how a GPS-based mileage tracker can benefit your organization.
