Regardless of what type of business you’re in, there are going to be times when you need to drive your personal vehicle on a business trip. Whether it’s running to Staples for office supplies or driving your deposit to the bank, business mileage is deductible. Whether you’re taking the standard mileage deduction or going through the arduous task of using actual vehicle expenses, it’s important that you keep track of your mileage.
Tracking your mileage can be as easy as the old standby of keeping a pencil and a logbook in your glove department. Just write down the date, the beginning mileage for each trip, the number of miles driven, and a small note with the purpose of the trip each time you get in the car for a business errand.
If you’re an iPhone user, there are several mileage log trackers available for making mileage tracking a little more fun. Some top-rated apps include Milog by SymplysSoft. One of the more interesting apps is DayTracker by Research Specialists. This app tracks your locations using GPS, recording all the stops and total mileage for each trip. The resulting mileage reports can be exported to Excel.
Whether it’s high-tech or low-tech, don’t miss out on this big tax deduction. If you drive 100 miles in errands in a month, that’s $55 of expenses. That extra $55 of expenses could translate into $16 or more in tax savings!
Deb Howard Greenleaf, EA, CEO and Principal, of Greenleaf Accounting Services provides virtual accounting and bookkeeping services and specializes in financial management to consultants, coaches, solo professionals, and other small business owners across the US. Deb is an Enrolled Agent (EA)—an IRS-licensed tax professional—and specializes in small businesses and entrepreneurs filing Schedule C or as an LLC. As an Advanced Certified QuickBooks ProAdvisor, Deb spends her day in QuickBooks Online and specializes in providing QBO support.