Track Mileage: Use a mileage tracker app to accurately record business-related travel for tax deductions
- Joe Mardesich
- Jun 27, 2024
- 2 min read
As a small business owner, every penny counts, especially when it comes to taxes. One often overlooked area that can save you money is tracking your business-related mileage. Here’s why and how you should do it:
Why Track Mileage?
Many business owners drive for work purposes, whether it’s visiting clients, attending meetings, or running errands. The miles you drive for these activities can add up to significant deductions on your taxes. The IRS allows you to deduct a certain amount per mile driven for business purposes (as of 2024, it's 58.5 cents per mile).
Use a Mileage Tracker App
Gone are the days of logging miles manually in a notebook. Now, there are numerous apps available that make tracking mileage easy and accurate. These apps use GPS to automatically log your trips, so you don’t have to worry about forgetting to record a trip or making errors in your calculations.
Benefits of Using a Mileage Tracker App:
Accuracy: GPS-based apps ensure that every mile driven for business purposes is accurately recorded.
Time-Saving: No more manual entries or guesswork. The app does the work for you, saving you time and hassle.
Audit Protection: Having a detailed mileage log provides solid evidence in case of an IRS audit, ensuring you can substantiate your deductions.
How to Get Started:
Choose an App: Research and choose a mileage tracker app that suits your needs. Look for features like automatic tracking, categorization of trips, and export options for tax reporting.
Set Up: Install the app on your smartphone and set it up according to your business details.
Use Consistently: Make it a habit to start and stop tracking each business trip. Review and categorize trips regularly to ensure accuracy.
Maximize Your Deductions
By diligently tracking your mileage using a dedicated app, you not only simplify your record-keeping but also maximize your tax deductions. Every mile counts, so don’t overlook this simple yet effective way to save money come tax time.
Stay tuned for more bookkeeping tips to help your small business thrive!
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