As a business owner or employee who frequently travels for work, it is essential to log your miles for tax and reimbursement purposes. Without a proper mileage log, you run the danger of missing out on key deductions and being audited by the IRS. Keeping track of your miles need not be a difficult undertaking, though. Using our step-by-step approach, you can produce an accurate, organized, and manageable distance journal.
Gathering all relevant information is the first step in generating a distance log. This comprises the date of the trip, the beginning and ending miles of the vehicle, the reason for the journey, and the destination. You can keep track of this information using a GPS device, a smartphone application, or by writing it down manually.
The IRS wants you to give proof of your mileage for tax purposes, therefore it is essential to keep meticulous records. Keeping track of your miles might also help you find areas in which you can cut your travel expenses and increase your productivity.
Arrange Your Data
Once you have collected your mileage data, you must organize it such that it is simple to track and evaluate. Use a spreadsheet or a mileage log template for this purpose. Ensure that you document all required information accurately and completely and that you store all receipts and bills in a secure location.
Choose a Tracking Method
It is essential to choose the type of mileage monitoring that best suits your needs. Using a paper mileage diary in which you manually record your distance in a notebook or logbook is one method. Alternatively, you can utilize a digital mileage log, like MileageWise, in which you record your mileage using a software app.
Both systems have advantages and disadvantages. Paper mileage logs are simple and straightforward to use, but they may be less precise and more error-prone. An automated mileage log is more accurate and contains more information.
Generate your mileage log
After collecting and organizing your trip information and deciding on a tracking technique, it is time to build your mileage record. If you use a paper mileage log, you can design or download a template online. If you are utilizing a digital mileage log, you can use a mileage app or software for mileage tracking. These apps are usually found on App Store or Google Play.
Ensure that your mileage log is simple to read and browse and that it contains all pertinent information, such as the date of the trip, the starting, and ending mileage, the purpose of the trip, and the destination. You may also wish to offer other details, such as the amount of reimbursement or the gas cost.
Keep a mileage record
Finally, keeping track of your miles is an essential component of managing your business travel expenses. It is essential to regularly update your mileage log. When manually keeping your mileage log, involves updating your record each time you take a trip, reviewing your log frequently to ensure its accuracy and storing your receipts and bills in a secure location. To simplify the process, consider downloading a mileage tracking app or piece of software, like MileageWise, to make the task of logging your mileage effortless and automatic.
How MileageWise helps you with mileage logging
Using MileageWise, you can produce an accurate, organized, and manageable mileage log. With this GPS-enabled mobile app, you can easily track your mileage statistics, ensuring their accuracy and completeness. The software automatically organizes your data and delivers thorough statistics, making it simple to track and maximize your business travel expenses.
In addition to trip categorization, expenditure tracking, and receipt capture, MileageWise offers additional capabilities that can further simplify your expense management process. With MileageWise, you can generate a full mileage log that satisfies all applicable regulations and saves you time and money. With MileageWise, you can create a mileage log that meets all the necessary requirements and saves you time and money.