The business mileage tracker is a great tool for people who own a business or who are employed by a business. Essentially most people who use their vehicles for work can find value in the product. If you have to claim mileage, it is very important to make sure that you are keeping good mileage records. Not only do you want to ensure that you can properly fill out the reimbursement form your company offers you, but you also will want to make sure you can determine the proper mileage deduction on your income tax form. The good news is that a business mileage tracker will allow you to keep those records and to track your total mileage.
Capturing Relevant Information
When it come to mileage you are trying to claim, it can be really hard to claim mileage that you can’t prove. That’s why it’s important to always accurately track your mileage. With a business mileage tracker, it’s vital to make sure you have all the information that you need.
For every business trip you should have these key points:
1. Date of travel
It goes without saying that the date of travel will also be an important item when you are claiming deductions for mileage.
2. Purpose of travel
This information would include details like your client’s name or business purpose. Be sure to keep track of whether it is a trip to the bank, meeting with CEO, etc.
3. Your from/to locations
Keep track of the address you left from and the address you went to on any given date. The business mileage tracker will keep track of your mileage so that you can enter it in later. The most important aspects are where you started and ended.
What About Additional Expenses?
If you are also claiming additional expenses, you can add those to your list as well. On top of mileage deductions, many people have the option to claim gas, hotel and any other expenses. If you are using your vehicle for business and personal use, then you will also need to record the mileage you have used at the beginning and end of the year. Through this means, you will be able to determine your business use percentage. Of course, this is something that will be needed when it comes time to do your taxes.
IRS Requirements for Mileage
One of the reasons why it’s so important to have a business mileage tracker is because the IRS wants timely and accurate records of your mileage. They want to see daily records as well as yearly ones. It’s therefore essential to have a clear record of the destination and business purpose at all times.
Business Mileage and Taxes
After you have recorded your mileage, the next step is to include all your information on employee reimbursement forms and tax returns.
The bottom line is that it’s important to keep track of your expenses and mileage immediately. A business mileage tracker is highly valuable. Not only does it make the process easier, but also it keeps you from forgetting to add vital information.